Bitcoin experienced a significant sell-off, dropping nearly 2.5% within the last 24 hours after Shigeru Ishiba was elected as Japan's new prime minister.
His appointment raised fears of a potential interest rate increase from the Bank of Japan (BOJ).
Following a recent 10% increase in Bitcoin’s value after the U.S. Federal Reserve cut interest rates by 50 basis points, Ishiba’s views on monetary policy normalization have unsettled investors.
As a result, the yen strengthened significantly, while the Japanese Nikkei index fell by 5%. Bitcoin’s price declined from approximately $65,000 to $63,300 before stabilizing around $64,000.
Ishiba’s perspective aligns with the BOJ’s intention to gradually move away from its low interest rate policy. This shift has reignited concerns in the market, particularly due to memories of a July rate hike that led to significant volatility, causing Bitcoin to plummet from $70,000 to $50,000.
Despite previous assurances from the BOJ that there would be no rate increases in 2024, Ishiba’s election has sparked renewed worries about potential tightening measures, contributing to a broader market downturn.
His prediction is rooted in growing instability across traditional financial systems and what he believes is the emergence of the most powerful bull market in history.
Japanese investment firm Metaplanet has officially joined the ranks of the world’s largest corporate Bitcoin holders, announcing Thursday the purchase of 145 BTC — pushing its total stash to 5,000 BTC, currently valued at around $460 million.
As global sanctions continue to isolate Russia from traditional financial networks, the country’s top financial bodies — the Central Bank and the Ministry of Finance — are preparing to launch a government-backed cryptocurrency exchange.
Veteran Bloomberg Intelligence strategist Mike McGlone has reiterated his bearish stance on Bitcoin, adding Dogecoin (DOGE) to the list of assets showing signs of weakness.