Bitcoin Crashes After Japanese Rate Hike

• A surge in cryptocurrency selling caused by an increase in Japanese interest rates has driven BTC & ETH prices downwards toward their lowest points for several months

• Dip buying activity accounted for 67% of total volume traded across all cryptocurrencies on Sunday
• As recession fears grow, the Nikkei225 index enters bear territory following sharp declines in Japanese markets.

When Japan raised its benchmark interest rate from 0% to 0.25%, it sent shockwaves through the global financial markets. This unexpected move has fueled recession fears and triggered a massive sell-off in the crypto market, plunging Bitcoin, Ethereum, and other major cryptocurrencies to their lowest levels in over five months.

The two largest cryptocurrencies by market capitalization, Bitcoin and Ethereum, have both seen significant losses of 9% and 18% within just one day of trading respectively. Such drastic fluctuations are indicative of a highly unstable and unpredictable marketplace at present.

Weekend trading volumes exploded over Sunday compared to Saturday rising more than 214% overnight as buyers took advantage of lower-priced assets during these dips. 

The most traded currencies were Bitcoin (BTC), Solana (SOL), and Ether (ETH), making up around two-thirds or roughly $8 billion worth of activity across all exchanges globally.

Japan’s Stock Market Plummets Amid Recession Worries

Also affected by Japan’s rate hike was the domestic stock market where indices fell sharply including Nikkei225 & Topix Indexes respectively down about 7% this morning alone after peaking on July eleventh before falling nearly twenty percent since then pushing Nikkei into bear territory signaling a lack of confidence among equity holders.

Global Concerns Push Investors Towards Safe Haven Assets

As turmoil amplifies within crypto markets worldwide, many investors are now looking elsewhere for safety – such as bonds – amid uncertainties related to the upcoming US elections along with heightened geopolitical tensions which have added fuel to bearish sentiment towards cryptos like BTC. 

More than $780 million worth of positions predominantly long were liquidated within the last twenty-four hours according to data provided by CoinGlass.