Bitcoin Slides to Three-Month Low Amid Yen Surge and US Political Headwinds
Bitcoin plummeted to a three-month low of $88,500 on Tuesday, as global risk sentiment took a hit. The cryptocurrency market faced mounting pressure due to technology stocks declining and the Japanese yen strengthening.
The yen's surge has sparked concerns about broader market stability, with its value approaching a three-month high against the US dollar. The yen has gained nearly 6% over the past six weeks as investors bet on interest rate hikes from the Bank of Japan.
Political headwinds in the US also contributed to Bitcoin's decline. Three state-level initiatives for Bitcoin reserves failed to gain traction, underscoring the political risks involved in institutional adoption.
Some market observers link Bitcoin's weakness to broader monetary conditions. Bitwise analyst Andre Dragosch notes that 'the money supply has bottomed out recently, meaning BTC's price swoon may not last for long.'