Bitcoin

<ul><li>Bitcoin&#39;s impending &#39;death cross&#39; may mislead bears as BOJ downplays rate hikes, supporting a potential bullish trend in the market.</li><li>The BOJ&#39;s decision to keep rates steady could benefit Bitcoin and other risk assets, contributing to a rise in market indices like the Nikkei.</li><li>The unwinding of yen carry trades has led to Bitcoin&#39;s recent price drop, impacting broader financial markets and causing risk aversion.</li></ul>Bitcoin&#39;s (<a href="https://cryptotale.org/bitcoin-rsi-at-lows-potential-reversal-or-consolidation/" rel="noopener noreferrer nofollow">BTC</a>) imminent &#39;death cross&#39; might once again mislead bears, as the Bank of Japan (BOJ) minimizes the risk of a near-term rate hike. Early Wednesday, BOJ Governor Shinichi Uchida <a href="https://www.japantimes.co.jp/business/2024/08/07/markets/boj-dovish-signal/" rel="noopener noreferrer nofollow">stated</a> the central bank would maintain current borrowing costs amid market instability. This stance weakens the case for further unwinding of &#34;yen carry trades,&#34; impacting risk assets, including Bitcoin.Consequently, the death cross, a bearish pattern where Bitcoin&#39;s 50-day moving average (SMA) drops below its 200-day SMA, may not have the expected impact. Bitcoin&#39;s price briefly exceeded $57,300 after Uchida&#39;s remarks, as the Japanese yen (JPY) fell to 148 per U.S. dollar (USD) from 145 per USD. Additionally, Japan&#39;s Nikkei index surged by 4%, signaling a risk reset. Futures for the S&amp;P 500 increased by 0.8%.The yen carry trade involves borrowing cheap yen and investing in higher-yielding currencies or assets. This strategy gained popularity as the BOJ maintained low rates while other central banks, including the Fed, raised rates to fight inflation. Last Wednesday, the BOJ&#39;s first rate increase in 17 years led to an unwinding of these trades, causing Bitcoin to drop from $66,000 to $50,000 within five days.<a href="https://cryptotale.org/bitcoins-death-cross-may-mislead-bears-boj-eases-rate-hike/" rel="noopener noreferrer nofollow">Read more on Cryptotale.</a>Visit the links for more information <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/cryptotalemedia" rel="noopener noreferrer nofollow">Twitter </a>| <a href="https://t.me/cryptotale_news" rel="noopener noreferrer nofollow">Telegram </a>| <a href="https://www.instagram.com/cryptotalenews/" rel="noopener noreferrer nofollow">Instagram </a>|

Bitcoin's Death Cross May Mislead Bears, BOJ Eases Rate Hike

CryptoTale

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