Pressure on the Bitcoin market is intensifying due to rising inflation in Japan and the international political situation, indicating a potential price pullback.
Inflation in Japan and Its Impact on Bitcoin
In Japan, the core inflation rate has reached a two-year high of 3.7%, prompting discussions of potential interest rate hikes by the Bank of Japan. This unexpected increase, compared to the expected 3.6%, may exert pressure on the global economy, which is also reflected in the cryptocurrency market.
Geopolitical Tensions and Their Consequences
Additionally, Bitcoin faces pressure due to escalating geopolitical tensions in the Middle East, where the US is preparing for possible actions against Iran. These events keep traders on edge and create uncertainty in the cryptocurrency market.
Prospects for Bitcoin Price Movement
Bitcoin's price has already dropped below the 50-day moving average, indicating a potential further decline. A 28% decrease in trading volume over the last 24 hours also raises the likelihood of a pullback to the support level at $103.1K. However, continued demand from institutional investors for Bitcoin ETFs could help stabilize prices in the long term.
In conclusion, Bitcoin's price pressure may persist due to macroeconomic factors and geopolitical circumstances. Market participants should closely monitor developments.
