Bitcoin Faces Test as Japan Tightens Money Policies

Bitcoin faces a significant challenge as the Bank of Japan tightens its monetary policy, potentially causing a global liquidity crunch and pressuring risky investments like Bitcoin. With Bitcoins price already down nearly 30% from its peak, the Japanese central banks expected interest rate hike could further impact the cryptocurrency market. The shift towards more normal financial conditions might unwind the yen carry trade, leading to a stronger dollar, volatile stock markets, and a drag on crypto. However, the full impact remains uncertain, as opposing forces from Japan and the U.S. could cause short-term market fluctuations. As the holidays approach, the crypto market may experience increased volatility due to lower trading activity.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.