Bitcoin Dips Amid Concerns Over Japan’s New Prime Minister

Bitcoin experienced a significant sell-off, dropping nearly 2.5% within the last 24 hours after Shigeru Ishiba was elected as Japan's new prime minister.

His appointment raised fears of a potential interest rate increase from the Bank of Japan (BOJ).

Following a recent 10% increase in Bitcoin’s value after the U.S. Federal Reserve cut interest rates by 50 basis points, Ishiba’s views on monetary policy normalization have unsettled investors.

As a result, the yen strengthened significantly, while the Japanese Nikkei index fell by 5%. Bitcoin’s price declined from approximately $65,000 to $63,300 before stabilizing around $64,000.

Ishiba’s perspective aligns with the BOJ’s intention to gradually move away from its low interest rate policy. This shift has reignited concerns in the market, particularly due to memories of a July rate hike that led to significant volatility, causing Bitcoin to plummet from $70,000 to $50,000.

Despite previous assurances from the BOJ that there would be no rate increases in 2024, Ishiba’s election has sparked renewed worries about potential tightening measures, contributing to a broader market downturn.