Fear accelerates with Bitcoin

The Bitcoin Market (BTC) began the week with a greater sense of fear. The deterioration occurs in the face of changes in the macroeconomic environment that emphasizes global investment market sales.

Japan’s bond performance rose to 2,265% in 2020, reaching its highest level since the 2008 global financial crisis. This occurs in anticipation of an increase in interest rates and increased inflationary pressures by the Bank of Japan (BOJ).

Historically, The rise in Japanese bonds has unleashed a sense of rejection of behavior and risk in the Bitcoin market. Without going any further, this was seen in Japan’s rising interest rates in August last year.

The reason is that such a scenario represents the greater strength of the Japanese currency, the yen (jpy). In other words, yen loans discourage you from buying dollars and investing in the stock and cryptocurrency market.

In this situation, BTC prices fell at USD 80,000 yesterdaylost its highest lowest trend in the last two weeks. This can be shown below:

BTC woke up today with a rebound of USD 84,000, but for now he is unable to keep him, causing his fear to get worse. According to the index Fear and greed (Fear and Greed) Alternative explorers’ sense of cryptocurrency market today has dropped to 20 points, the lowest level since last Wednesday.

From a scale going from 0 to 100, this index shows that the cryptocurrency market sense is in a state of fear when it is in an extreme state of less than 45 and less than 25. Instead, it reflects neutrality from 45 to 55, with 55 to 75, greedy at high and extreme levels.

As shown in the following graph, The market is at almost extreme fear levels for two weeks. Advertising new US tariffs on imports from different countries led to this scenario. This is due to an increase in Japanese bonds.

China, Mexico and Canada also respond to imports from the US, which underscores the tariff war, which requires SO. This is something that markets are worried about inflation, recession and rising high interest rates in American power.

BTC is affected by the macroeconomic environment

“Only if this tariff war ends and the Federal Reserve resumes its fee cuts will the main cryptocurrencies reinvigorate the trend towards their previous historic maximums,” said Jeff May, BTSE’s operations director.

Experts estimate that market prices can be pushed to deeper falls. “Geopolitical and economic uncertainties make institutions lessen their cryptocurrency holdings.” So he warns that. Bitcoin could fall to 70,000-80,000 US dollars in the coming weeks.

It was 24% below its history maximum of 109,300 USD a month and a half ago, as BTC quotes around 83,000 USD. As reported by Cryptootics, some see the risk of a greater fall, while others view this bearish pressure as a risk buying opportunity.

Temporarily, the cryptocurrency market was in extreme terror last Friday when US President Donald Trump ordered the creation of illegally confiscated governments and strategic national Bitcoin reserves and other digital assets. This can therefore be repeated to receive more favorable news against fears about the macroeconomic environment.