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<ul>
 <li>Japan's 0.25% rate hike prompts investors to repatriate funds, leading to global market shifts and crypto downturns.</li>  
 <li>Bitcoin and Ethereum saw steep declines as the Yen/USD exchange rate dropped, highlighting the global impact of Japan's policy shift.</li>  
 <li>The Yen's unwinding and global market pressures are key factors in the recent cryptocurrency market crash, affecting Bitcoin and Ethereum.</li> 
</ul>  
<p>For three decades, Japan’s 0% interest rates allowed investors to borrow Yen cheaply and invest in global assets like T-Bills and the Nasdaq. This week, a sudden 0.25% rate hike by the <a href="https://www.boj.or.jp/en/" rel="noopener noreferrer nofollow">Bank of Japan</a> has triggered a substantial market reaction. Investors are now pulling funds back to Japan, affecting global markets, including cryptocurrencies.</p>  
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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  https://twitter.com/AbsGMCrypto/status/1820273596385656926
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<h2 class="wp-block-heading" id="h-japanese-yen-s-influence-on-global-markets"><strong>Japanese Yen's Influence on Global Markets</strong></h2>  
<p>The recent hike in Japanese interest rates marks a pivotal shift. Investors, who previously borrowed Yen at no cost, are now facing higher borrowing costs. Consequently, they are repatriating funds back to Japan, leading to <a href="https://cryptonewsland.com/ethereum-crashes-to-nearly-2100-gas/" rel="noopener noreferrer nofollow">substantial market movements</a>. The unwinding of these positions is estimated to involve over $4 trillion.</p>  
<p>Monitoring the Yen/USD exchange rate is crucial as its fluctuations impact risk assets, including cryptocurrencies. The exchange rate has shown an upward trend with peaks around 162.000 JPY/USD, but recently, a sharp decline has brought it to approximately 151.720 JPY/USD.&nbsp;</p>  
<p>This decline reflects notable selling pressure and negative sentiment toward the USD against the JPY. Key support and resistance levels are observed around 133.361 JPY/USD and 162.000 JPY/USD, respectively.</p>  
<p><img width="602" height="428" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXc-aiOJQfeCJcE3p0o6jbgG4PJtX2_bNMF75rG0sfipXe6xuK347FZuIyFkbi8BDiWe9mmIn2-GTuOth8NNJm0xhITnFTshN97W7rBEIXMGyDkmGFxcAwqcERfNDMQW1jqPp4vaNgWkx4LW7aHmZlCdSFQt?key=nZgjJbCCAW4xc48E1hKPLA"></p>  
<p>Source: <a href="https://x.com/AbsGMCrypto" rel="noopener noreferrer nofollow">@AbsGMCrypto</a> on X</p>  
<h2 class="wp-block-heading" id="h-bitcoin-and-ethereum"><strong>Bitcoin and Ethereum</strong></h2>  
<p>The decline in the Yen/USD exchange rate has coincided with a sharp drop in cryptocurrency values. Both <a href="https://cryptonewsland.com/btc-and-eth-fall-over-5-analyst-recommends-dtx/" rel="noopener noreferrer nofollow">Bitcoin (BTC) and Ethereum (ETH)</a> experienced steady performance until late afternoon, when significant declines began. Around 8:00 PM, both cryptocurrencies started to drop sharply, with Ethereum showing a more pronounced decline than Bitcoin. By 6:00 AM, Bitcoin had dropped approximately 15%, while Ethereum saw a decline of around 20-25%.</p>  
<p><img width="602" height="400" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe2ezmZ9tpvlu-sw6-w7IQfV_XDq5iOJKDkEXQ5vYI19TkqC4gnPA00vq934PnYKyiwoFmjzdwPC5JPVLs5GD4m9dk4XLvGKvXo1nn0NxTbN744-jeNlZbI-uTvovRQTggkZKV0pgUY-sur8ujOWySu-WE?key=nZgjJbCCAW4xc48E1hKPLA"></p>  
<p>Source: <a href="https://coinmarketcap.com/currencies/bitcoin/" rel="noopener noreferrer nofollow">CoinMarketCap</a></p>  
<p>The synchronized yet more severe decline in Ethereum suggests market-wide factors affecting both assets, with Ethereum impacted more. This steep drop could be due to sudden market sentiment changes, significant news events, or other external factors.</p>  
<h2 class="wp-block-heading" id="h-broader-market-factors"><strong>Broader Market Factors</strong></h2>  
<p>Several factors are contributing to the current <a href="https://cryptonewsland.com/why-did-the-crypto-market-crash/" rel="noopener noreferrer nofollow">crypto market crash</a>. Decreasing odds of a Trump presidency, recession fears, a stock market correction, and geopolitical tensions are all playing roles.&nbsp;</p>  
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
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  https://twitter.com/milesdeutscher/status/1820128964850958385
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</figure>  
<p>Additionally, the Yen unwinding, Jump unwinding positions, Gox distributions, and recent pumps trapping fresh longs are notable contributors. Altcoin dispersion adds to the complexity, creating a perfect storm for the crypto market.</p>  
<h4 class="wp-block-heading" id="h-read-also">Read also</h4>  
<ul class="wp-block-yoast-seo-related-links yoast-seo-related-links">
 <li><a href="https://cryptonewsland.com/why-did-the-crypto-market-crash/" rel="noopener noreferrer nofollow">Why Did the Crypto Market Crash, Explore the Many Factors Behind the Dip</a></li>  
 <li><a href="https://cryptonewsland.com/japan-explores-digital-yen-expert-panel-to-assess-cbdc-feasibility/" rel="noopener noreferrer nofollow">Japan Explores Digital Yen: Expert Panel to Assess CBDC Feasibility</a></li>  
 <li><a href="https://cryptonewsland.com/metaplanet-buys-20-38-btc-finishes-6-26m/" rel="noopener noreferrer nofollow">Metaplanet Buys 20.38 BTC, Finishes $6.26M Bitcoin Plan, Stock Jumps 19%</a></li>  
 <li><a href="https://cryptonewsland.com/digital-yen-pilot-japans-bold-strategy-amid-cbdc-global-race/" rel="noopener noreferrer nofollow">Digital Yen Pilot: Japan's Bold Strategy Amid CBDC Global Race</a></li>  
 <li><a href="https://cryptonewsland.com/metaplanet-boosts-bitcoin-holdings-amid-market-dip-sees-stock-surge/" rel="noopener noreferrer nofollow">Metaplanet Boosts Bitcoin Holdings Amid Market Dip, Sees Stock Surge</a></li> 
</ul> 
<p>The post <a href="https://cryptonewsland.com/why-crypto-market-crashed-and-btc/" rel="noopener noreferrer nofollow">Why Crypto Market Crashed and BTC Dumped to $54K and ETH Dumped to $2.2K</a> appeared first on <a href="https://cryptonewsland.com" rel="noopener noreferrer nofollow">Crypto News Land</a>.</p>

Why Crypto Market Crashed and BTC Dumped to $54K and ETH Dumped to $2.2K

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