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Cryptocurrency News Articles
Nasdaq Futures Fall, Yen Strengthens, Why Bitcoin Falls Below $89,000
Feb 25, 2025 at 04:21 pm
Bitcoin fell below $89,000 in the early trading session on February 25, which was a combination of the decline in Nasdaq futures and the strengthening of the yen. Investors should pay attention to these factors through multiple channels.
On February 25, CoinDesk reported that Bitcoin fell below $89,000 in early European trading on Tuesday. Behind this price fluctuation is the dual impact of Nasdaq futures and the yen trend.
Let’s look at Nasdaq Futures first. Data shows that its decline of 0.3%, indicating that the decline will continue for three consecutive days. Since February 18, the technology stock index has fallen by more than 4%. The performance of technology stocks is related to the price of Bitcoin.
The instability of the technology stock market will affect investor confidence. When Nasdaq futures fell, investors' preference for risky assets decreased. Bitcoin, as a risky asset, is naturally implicated. Investors sell Bitcoin one after another, causing its price to fall.
Let’s look at the yen trend again. The safe-haven currency, the Japanese Yen, reached 149.38 against the US dollar, approaching a nearly three-month high of 148.84 on Monday. The yen rose nearly 6% in six weeks as the market bets on the Bank of Japan's interest rate hikes.
The strengthening of the yen reminds the market of July. At that time, the Bank of Japan raised interest rates and the yen soared, triggering widespread risk aversion. The price of Bitcoin plummeted from about $65,000 to $50,000 in a few days. The similarity of history has made investors worry that the same situation will repeat itself.
Under this concern, investors choose to reduce their holdings of Bitcoin in order to avoid risks. The pressure on Bitcoin to sell in the market has increased, pushing the price to below $89,000. Moreover, the strengthening of the yen also affects the direction of global capital flows.
Changes in capital flows have an impact on the supply of funds in the cryptocurrency market. When a large amount of funds flows to safe-haven assets such as the yen, the funds flowing into the Bitcoin market decrease. Funds are one of the important factors driving the rise of Bitcoin prices. With the decrease in funds, it is difficult for Bitcoin prices to maintain high levels.
From the perspective of market sentiment, the decline in Nasdaq futures and the strengthening of the yen jointly create a pessimistic market atmosphere. In this atmosphere, investors tend to adopt conservative investment strategies.
This conservative strategy is manifested in reducing investment in high-risk assets and increasing allocation of safe-haven assets. Bitcoin is a high-risk asset in the eyes of investors and naturally becomes the target of reduction. Selling in the market increased, buying orders decreased, and Bitcoin price fell.
In addition, the linkage of the market cannot be ignored. Various fields of the financial market are interrelated, and there is a complex transmission mechanism between the Nasdaq futures, the yen and the Bitcoin market. When a market fluctuates significantly, it will affect other markets through various channels.
In this Bitcoin price decline, Nasdaq futures fell and the yen strengthened, and through channels such as investor sentiment and capital flow, it worked together on the Bitcoin market, causing its price to fall below US$89,000.
The price of Bitcoin fell below $89,000, the result of the combined effect of the decline in Nasdaq futures and the strengthening of the yen. Investors should pay close attention to these factors when facing market changes in order to make more reasonable investment decisions.
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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- Nasdaq Futures Fall, Yen Strengthens, Why Bitcoin Falls Below $89,000
- Feb 25, 2025 at 04:24 pm
- Bitcoin fell below $89,000 in the early trading session on February 25, which was a combination of the decline in Nasdaq futures and the strengthening of the yen. Investors should pay attention to these factors through multiple channels.
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- The yen has risen nearly 6% in six weeks. Will it trigger another Bitcoin crash?
- Feb 25, 2025 at 04:19 pm
- The yen rose nearly 6% in six weeks, attracting attention. Its fluctuations have a significant impact on the price of Bitcoin. Although Bitcoin currently has positive factors, there are still downside risks affected by the yen, so investments should be cautious.
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- The Bank of Japan's interest rate hike remarks reappeared. Can Bitcoin escape the shadow of the July crash?
- Feb 25, 2025 at 04:16 pm
- Bitcoin fell more than $89,000 in the early trading on Tuesday, February 25, due to the strengthening of the yen and the Bank of Japan's interest rate hikes. Bitcoin is closely related to global financial markets, and it is doubtful whether it can get rid of the shadow of July's plunge this time.
