Bitcoin drops as Japan, American tech giant NVIDIA rattle markets
Representations of virtual cryptocurrencies are seen in this illustration taken November 28, 2021. (Reuters Photo)
Bitcoin attracts attention with its recent depreciation. As of the morning of Sept. 4, 2024, the cryptocurrency fell as low as $55,600, but the search for balance continues at levels close to $56,500 with reaction purchases.
This decline in Bitcoin can be attributed to two key factors:
- The Bank of Japan’s interest rate hike signals
- The massive depreciation in NVIDIA shares.
According to Bank of Japan Governor Ueda, there may be another rate hike depending on the course of the economy. After this statement, the USD/JPY pair fell from 147.00 to 145.50. Japan’s stock market also lost nearly 4% of its value.
These developments caused jitters in global markets and increased the selling pressure on risky assets such as Bitcoin.
In addition, below-expected U.S. economic data led to sharp declines in US stock markets. Cryptocurrencies closely follow NVIDIA stock, which experienced a decline of 9.53%. This decline also had a negative impact on cryptocurrency markets, especially Bitcoin.
Bitcoin prices
Bitcoin, which rose as high as $59,800 on global exchanges, is down to $55,600. In the morning hours, the BTC price hovers around $56,500, which stands out as critical support.
Ethereum prices
Ethereum, the second-largest currency in the market, experienced a similar decline. After falling to the $2300 limit, the Ethereum price continues to seek balance near $2370 with reaction purchases.
For ETH, the $2300 level is seen as a critical support point.
These recent developments have caused volatility in cryptocurrency markets and decreased risk appetite. In particular, concerns about Japan and NVIDIA are causing Bitcoin and other cryptocurrencies to lose value.
