Bitcoin Price Analysis: BTC Targets $90,000 As Bank of Japan Hikes Interest Rates
Bitcoin (BTC) is attempting a push towards $90,000 after recovering from an intraday low of $84,460. The flagship cryptocurrency lost momentum late on Thursday but bounced back to reclaim $85,000, moving to its current level of $87,869.
Meanwhile, the Bank of Japan hiked interest rates by 25 basis points to 0.75%, the highest level in almost 30 years. However, the Japanese Yen weakened against the US Dollar, while the market reaction to the hike was muted as the hike was already priced in, with traders holding long positions.
Bank Of Japan Hikes Rates
The Bank of Japan (BOJ) hiked interest rates by 25 basis points, taking them to the highest level in almost 30 years. The BOJ acknowledged inflation was above the 2% target primarily due to rising import costs and domestic price dynamics. However, policymakers clarified that interest rates adjusted for inflation remain negative. Despite the hike, the Japanese yen weakened against the US Dollar, while Bitcoin (BTC) reclaimed $87,000 after a drop to $84,460. The muted reaction is along expected lines because investors knew the hike was coming. Speculators also held long positions on the yen, preventing volatile market movements following the hike.
Analysts were worried the rate hike could trigger the unwinding of yen carry trades, initiating risk-off sentiment. Japan’s low interest rates have made the yen the go-to instrument for carry trades. Investors borrow in yen and invest in high-yielding assets like US tech stocks, Treasury Notes, and emerging market bonds, increasing liquidity and risk appetite. The carry trade strategy works as long as Japan maintains interest rates close to zero, turning its currency into a facilitator of leverage and risk across global markets.
Senate Confirms Mike Selig As CFTC Chair
The United States Senate has confirmed Mike Selig as the new Commodity Futures Trading Commission (CFTC) Chair. It has also tapped Travis Hill to lead the Federal Deposit Insurance Corp (FDIC). The confirmations were among 100 other nominees selected by the Trump administration to fill roles across the government. The nominations passed the Senate in a 53-43 vote. Selig has worked with the CFTC and the Securities and Exchange Commission (SEC), and promised to make crypto a top priority when he was nominated in October. On the other hand, Hill is already the acting chair of the FDIC.
Selig’s term as CFTC Chair will expire in April 2029. Caroline Pham, the acting CFTC Chair, will leave her post once Selig takes over and join crypto infrastructure provider MoonPay. However, Selig will be the sole commissioner of the CFTC following a spate of resignations earlier in the year. Meanwhile, Hill will lead the FDIC until 2030. Former FDIC Chair Martin Gruenberg resigned in January.
Crypto Market Cap Drops To 8-Month Low
The crypto market capitalization fell to an eight-month low of $2.94 trillion on Thursday, wiping out nearly all of this year’s gains. The market declined 33% from its all-time high of $4.4 trillion, and is down 14% since the beginning of the year, with several analysts stating a bear market is beginning. Analyst Michael van de Poppe believes markets will continue trending lower, with Bitcoin struggling to break above $90,000.
It’s very likely that the trend keeps going down until the BoJ comes out with the news. Wouldn’t be surprised if </span></i><a href="https://coinstats.app/coins/bitcoin/"><b><i>BTC</i></b></a><i><span style="font-weight: 400;"> continues to cascade and gets itself into a form of capitulation in the next 24 hours, as the trend clearly is down.
According to Nick Ruck, Director of LVG Research, the recent market decline is part of a broader market correction driven by macroeconomic pressures and reduced risk appetite among investors.
While short-term volatility persists, this pullback presents potential accumulation opportunities in fundamentally strong projects as the sector continues to mature and attract institutional capital.
Meanwhile, crypto analytics platform Santiment reported sentiment was slipping back into “fear” territory on the Crypto Fear & Greed Index. Social media commentary has also largely been bearish as prices fluctuated between $85,000 and $90,000.
Commentary is mainly showing fear after Bitcoin bounced to $90.2K yesterday, and then quickly retraced to $84.8K. Prices move opposite to the crowd’s expectations, so this volatility, being marked by fear, is a good signal for those who are patient enough to ride this out.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) fell to a low of $84,400 after yet another failed attempt to cross $90,000 on Thursday. The flagship cryptocurrency reached an intraday high of $89,447 on Thursday, but lost momentum as selling pressure around $90,000 overwhelmed buyers. As a result, the price dropped nearly 1% to $85,460.
According to analyst Ali Martinez, Bitcoin is stuck between $85,000 and resistance around $90,000. A breakdown below $85,000 could result in a substantially deeper correction, while a break past $90,000 could start a push higher. However, whether BTC could retain momentum after breaking past resistance remains to be seen. Crypto trader Daan Crypto Trades highlighted historical patterns in monthly trading ranges to argue for a large price move this month.
The distance between Bitcoin’s monthly lows and highs currently sits at 12%, significantly lower than usual. However, monthly candles show significantly wider price swings, indicating potential for price movements between now and the end of the year.
The current monthly low to high is still relatively small (~12%). Monthly candles generally see a bigger displacement than that. This happens in 92.3% of months. With that, the current second pivot (P2) is set on the 9th of December, when the current high was set. It would also be pretty unlikely that both the current high and low stand from a time perspective. The monthly low AND high set on or before the 9th of the month only happens in 4.3% of months.
BTC started the previous week in positive territory, rising 0.28% to $90,653. Buyers retained control as the price reached an intraday high of $94,640 before settling at $92,690, ultimately increasing 2.25%. However, it lost momentum on Wednesday, dropping 0.71% to $92,035. The price fell to an intraday low of $89,257 on Thursday as selling pressure intensified. However, it rebounded from this level to reclaim $90,000 and settle at $92,542. The price returned to bearish territory on Friday, dropping 2.45% to $90,278.
Source: TradingView
Price action remained bearish over the weekend as BTC registered a marginal drop on Saturday and 2.31% on Sunday, slipping below $90,000 to $88,171. Sellers retained control on Monday as the price fell 1.99% to $86,417. Despite the overwhelming selling pressure, BTC recovered on Tuesday, rising 1.66% to $87,854. The price briefly crossed $90,000 on Wednesday and settled at $90,336. However, it failed to stay at this level and settled at $86,209. BTC reached an intraday high of $89,447 on Thursday before losing momentum and settling at $85m460. The flagship cryptocurrency has rebounded during the ongoing session, up over 3% at $88,183.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.