Impact of Japanese Markets on Bitcoin
Japanese markets had a significant impact on Bitcoin over the weekend, leading to fluctuations in its price. With inflows opening on Wall Street on Monday, Bitcoin was trading at $49,200 according to CoinMarketCap. The ongoing war and fears of World War III have caused instability in the market, resulting in panic among U.S. traders who are losing confidence.
Fear Among Bitcoin Traders
Data from Another me shows that Bitcoin’s fear and greed index is currently at 17, indicating an “extreme fear” sentiment among traders. Despite this, Bitcoin (BTC) is valued at $55,239, marking a 7.0% increase from the previous day. Ethereum (ETH), the second-largest cryptocurrency, is valued at $2,460.54 today, up by 6.7% from yesterday. The global cryptocurrency market capitalization has seen a recovery, reaching $2.04 trillion, an 8.15% increase in the past 24 hours.
Market Recovery and Geopolitical Tensions
Despite hitting six-month lows, analysts predict a recovery in cryptocurrency markets. According to Michaël van de Popp, founder of MN Consultancy, the recent correction may lead to a bear trap cycle. While $1.2 billion was liquidated among traders initially, the markets seem to be stabilizing. Geopolitical tensions in the Middle East, such as Hezbollah’s drone attack on northern Israel, have added to the uncertainty. Iran and Hezbollah have threatened retaliation against Israel, creating further instability in the region.
The recent sell-off has raised concerns among investors, especially after the assassination of Hamas leader Ismail Haniyeh. Today, Israel faced drone attacks, leading to heightened security measures. Despite the challenges, market experts like Jim Cramer emphasize the need for caution, stating that a quick rebound may not be imminent.
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