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<p>The post <a href="https://coinpedia.org/news/japan-stock-market-correction-trigger-crypto-market-crash-bitcoin-ethereum-bleeding/">Japan Stock Market Crash Triggers Crypto Market Crash, Bitcoin &amp; Ethereum Bleeding&nbsp;</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The cryptocurrency market has plummeted to its lowest point in over five months, sending shockwaves through the digital asset world. The primary culprit behind this dramatic downturn is Japan’s stock market, which has been rattled by growing recession fears ignited by the Bank of Japan’s recent interest rate hike.</p> 
<p>In the past 24 hours, Bitcoin and Ethereum, the top two cryptocurrencies, have dropped sharply. Bitcoin is down 17%, and Ethereum has fallen by 23%.</p> 
<p>What next? </p> 
<h2 class="wp-block-heading" id="h-asian-stock-market-downturn">Asian Stock Market Downturn</h2> 
<p>This decline in the crypto market reflects a wider drop in stocks across the Asia-Pacific region. Japan’s Nikkei 225 index has fallen by as much as 7%, continuing a downward trend that began last week when the <a href="https://www.boj.or.jp/en/mopo/mpmdeci/mpr_2024/k240731a.pdf">Bank of Japan</a> raised its key interest rate to its highest level in 16 years.</p> 
<p>The Bank of Japan increased its interest rate to 0.25%, up from a previous range of 0% to 0.1%. This is the highest rate since 2008 and is part of a plan to tighten monetary policy, including reducing the purchase of Japanese government bonds.</p> 
<h2 class="wp-block-heading" id="h-is-the-us-entering-a-recession">Is the US Entering a Recession?</h2> 
<p>As soon as the market opened, the Nikkei index dropped more than 2,400 points. Within an hour, it had fallen 12.3%, losing about 1,900 points. Analysts are now predicting a possible US recession due to the increased chances of a major economic downturn.</p> 
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   <p lang="en" dir="ltr">BREAKING: Japan's Nikkei 225 ends trading day down 12.4%, the worst single-day result since 'Black Monday' in 1987</p>— The Spectator Index (@spectatorindex) <a href="https://twitter.com/spectatorindex/status/1820343693691551976?ref_src=twsrc%5Etfw">August 5, 2024</a>
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<p>Economist Peter Schiff also had something to add here. </p> 
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   <p lang="en" dir="ltr">Central banks have played with fire for years. Now the world is about to be burned. They kept interest rates artificially low, blowing up a global debt bubble. But as <a href="https://twitter.com/hashtag/inflation?src=hash&amp;ref_src=twsrc%5Etfw">#inflation</a> reared its head, rising rates pricked that bubble. Now it's time to pay the piper. The game is over.</p>— Peter Schiff (@PeterSchiff) <a href="https://twitter.com/PeterSchiff/status/1820260993630437636?ref_src=twsrc%5Etfw">August 5, 2024</a>
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<p>The tech market is struggling, and global economic uncertainty is rising. On Monday, US stock futures fell sharply, worsened by escalating tensions between Iran and Israel. This geopolitical instability could also affect the cryptocurrency market as investors become more cautious.</p> 
<h2 class="wp-block-heading" id="h-the-market-is-in-free-fall">The Market is in Free Fall! </h2> 
<p>Bitcoin, which recently reached $70,000, has now dropped to $50,350, a 17% decrease. In the past 24 hours, over $1.04 billion has been withdrawn from the crypto market. Of this, <a href="https://www.coinglass.com/LiquidationData">$901 million</a> came from investors who expected prices to rise, while $145 million came from those betting on prices falling.</p> 
<p>Other cryptocurrencies, especially altcoins, have also seen significant drops. Ethereum’s price has decreased by 20%, and many top altcoins have fallen between 15-20%.</p> 
<p>This represents the largest single-day drop since April 13, happening alongside a global market decline. Investors are losing confidence in major tech stocks in the U.S. and worldwide, adding to the overall economic uncertainty.</p> 
<p><strong>As investors flee, is this the perfect opportunity to enter the crypto market?</strong></p>

Japan Stock Market Crash Triggers Crypto Market Crash, Bitcoin & Ethereum Bleeding

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