Bitcoin experienced a decline following the Bank of Japan's (BOJ) decision to implement a 75 basis points rate hike, marking the largest increase in over three decades. This move has put the $80,000 level under significant pressure, as historical patterns indicate Bitcoin often suffers double-digit drawdowns after such hikes. Rising leverage costs are prompting foreign investors to reduce their Bitcoin positions.
On-chain data shows that short-term holders with positions near $101,000 are currently 16% underwater. Additionally, large investors have offloaded 24,000 BTC, contributing $2 billion in selling pressure. Despite this, open interest remains 30% below the levels seen during the October crash, reflecting a cautious market sentiment. A strong support base at $85,000 could potentially enhance Bitcoin's risk-to-reward ratio for value investors in the cryptocurrency market.
Bitcoin Falls as BOJ's 75bps Rate Hike Pressures $80k Level
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
