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Cryptocurrency News Articles
The yen has risen nearly 6% in six weeks. Will it trigger another Bitcoin crash?
Feb 25, 2025 at 04:17 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.
Recently, the news that the yen has risen nearly 6% in six weeks has attracted widespread attention from the market. Since the market bets that the Bank of Japan will raise interest rates, the yen has been strengthening, and its exchange rate against the US dollar has continued to rise, which has caused a certain impact on the financial market, and the Bitcoin market has also been pushed to the forefront.
Looking back at history, the fluctuations in the yen have had a significant impact on the price of Bitcoin. In July, the yen soared sharply due to the Bank of Japan's interest rate hikes, and risk aversion spread rapidly, and Bitcoin price plummeted from about $65,000 to $50,000 in just a few days, with many investors losing heavy losses.
Now that the yen has reappeared a strong upward trend, it makes investors wonder whether history will repeat itself. On February 25, according to CoinDesk, Bitcoin fell below $89,000 in the early trading of European trading on Tuesday due to factors such as the strengthening of the yen, and then hit a low of $88,500.
Judging from market data, since February 18, Nasdaq futures have continued to fall, and the technology stock index has fallen by more than 4%. This situation is also intertwined with the yen trend, further aggravating market uncertainty and the price trend of Bitcoin has become more confusing.
The strong performance of the safe-haven currency yen has gradually heated up the market's risk aversion sentiment. Its exchange rate against the US dollar was 149.38, gradually challenging the nearly three-month high of 148.84 set on Monday. In this case, Bitcoin, as a high-risk asset, faces huge downward pressure on its price.
Investors in the Bitcoin market are currently worried, and they are closely watching the every move of the yen. Once the yen continues to appreciate sharply, triggering a full-scale outbreak of risk aversion in the market, Bitcoin is likely to suffer a heavy blow again and repeat the plunge.
From the perspective of traders, they have begun to adjust their investment strategies when facing the strong rise in the yen. Some traders choose to reduce their holdings of Bitcoin and turn their funds to safer assets to avoid possible risks.
The price trend of Bitcoin is not only affected by the Japanese yen, but is also closely related to various factors such as the macroeconomic environment and regulatory policies. Against the backdrop of the current unstable global economic situation, the volatility of the Bitcoin market has further increased.
Although the yen rose nearly 6% in six weeks, there are also some positive factors in the Bitcoin market. As the cryptocurrency market gradually matures, its own risk resistance has been enhanced, and some investors still maintain confidence in its long-term value.
Some cryptocurrency analysts believe that although the yen trend has a certain impact on Bitcoin, the Bitcoin market is no longer the same as before. The structure of market participants is more diversified and the market depth has also been improved, which may buffer the impact of the fluctuations in the yen to a certain extent.
Judging from the flow of funds, there is no large-scale withdrawal of funds from the Bitcoin market. Some long-term investors remain firm in holding Bitcoin, believing that the value of Bitcoin is not only dependent on short-term market volatility.
However, it cannot be ignored that the strong rise of the yen is still a major hidden danger in the Bitcoin market. As long as the yen continues to maintain an upward trend, it will be difficult for Bitcoin price to get rid of downward pressure, and investors still need to remain highly vigilant.
Combining various factors, although it is not certain that the yen rose by nearly 6% in six weeks will definitely trigger a plunge in Bitcoin again, but the relationship between the two is closely related and the uncertainty in the market is still very high. Investors should be cautious about Bitcoin. Invest and pay close attention to market trends.
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.
