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Cryptocurrency News Articles
Bitcoin (BTC) Price Slumps 5% as Crypto Market Retreats, But Analysts See a Bullish Retrace
Aug 09, 2024 at 06:59 pm
worst of the crypto bloodbath has blown over, the market remains in retreat. Bitcoin’s (BTC) price is down 5% over the past week, while Ethereum’s (ETH) price has dropped by more than 15%. Altcoins followed suit, with a few exceptions: Cardano (ADA) fell 10%, Solana (SOL) 2%, Dogecoin (DOGE) 9%, Shiba Inu (SHIB) 8%, and BNB (BNB) 11%, while XRP (XRP) is up 6%.
Bitcoin’s recent sell-off has sparked a debate among analysts over its potential causes, with some attributing it to the halving and others pointing to a broader market sell-off.
According to veteran trader and crypto commentator Peter Brandt, Bitcoin’s decline since the halving is similar to that observed during the 2015-2017 halving bull market cycle.
In a recent X post, Brandt highlights the commonality between the two cycles, suggesting that the current Bitcoin price action could be influenced by the halving event.
However, some analysts disagree with Brandt's assessment. Khushboo Khullar, a partner at Lightning Ventures, argues that Bitcoin’s recent sell-off is more likely due to a broader market sell-off, triggered by the so-called carry yen trade.
According to Khullar, the crypto market dipped as a panic rush for liquidity hit the market, leading to a broad sell-off across different asset classes.
Matt Hougan, Chief Investment Officer of Bitwise Asset Management, also supports Khullar’s view.
In a recent interview with CNBC, Hougan stated that Bitcoin was simply caught in the crossfire of a broader sell-off due to the unwinding of the carry yen trade.
According to Hougan, “Nothing has changed fundamentally about Bitcoin.”
“We have a global capital market sell-off that impacted the crypto market on a low liquidity weekend, but nothing has changed fundamentally about Bitcoin or about crypto, except that we’re closer to the Fed lowering rates and closer to quantitative easing,” he added.
To understand the impact of the carry yen trade on Bitcoin, it's important to know what the yen carry trade entails.
The Bank of Japan (BOJ) has kept interest rates at or below zero for years, making it very cheap for investors to borrow the yen and use it to buy higher-yielding assets.
This strategy, known as the "yen carry trade," has been a major driver of demand for risky assets, including Bitcoin, over the past several years.
However, the BOJ's recent quarter-point hike in July made the carry trade less profitable and riskier, prompting investors to sell those assets and repay their yen loans.
This led to a broad global sell-off in stocks, commodities, and crypto, as investors liquidated their assets bought with an increasingly expensive yen.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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- Bitcoin (BTC) Halted at $65K Resistance, TAO Skyrockets by 80%
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- Monday started on a positive note for bitcoin as it jumped to a four-week peak of $64,800 before it was stopped and pushed south.
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- The Guardians' Mario coin celebration is a nod to their love of video games
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- When a Guardians hitter rounds the bases, he pulls his left fist down and punches his right into the air, imitating the motion Mario uses to punch bricks or boxes in the games in order to collect coins.
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- Top DeFi Trends and Use Cases of 2024
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- Bitgert (BRISE) Positioned to Surpass Ethereum (ETH) and Solana (SOL) in 2024, As Bitcoin Nears $63k
- Sep 23, 2024 at 10:15 pm
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- Transform Spare Coins into Luxury Properties by Discovering the Most Promising Cryptocurrencies for the Future
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- Top 5 Altcoins to Watch from October to April: Promising Exceptional Returns of Up to 70x
- Sep 23, 2024 at 10:15 pm
- As the market trends upward, the cryptocurrency world is abuzz with speculation about which altcoins will lead the charge. Promising exceptional returns, some coins are being tipped to soar by up to 70 times their current value. This article delves into the top five altcoins showing the most potential for explosive growth from October to April. Discover which digital assets to watch.