Bitcoin sell-off toward $60K may resume as Japan hikes interest rates

Bitcoin's price experienced a significant downturn, falling below $65,000 on May 31, 2024, marking its lowest point in over a month. This decline is attributed to Japan's decision to raise interest rates for the first time since 2007, a move that could tighten global liquidity. Analysts from Fundstrat Global Advisors, including Mark Newton, predict that Bitcoin could see a further price drop of 26% to 38% from its recent highs, potentially bringing the cryptocurrency down to the $50,000 to $60,000 range. This forecast is based on historical patterns observed during periods of tightening liquidity, where Bitcoin has historically experienced substantial corrections. The Bank of Japan's policy shift, signaling an end to its negative interest rate policy, is expected to influence capital flows worldwide. Traders are closely monitoring these developments for potential impacts on risk assets like Bitcoin.