Crypto Market Down on Hawkish BoJ Policies and Geopolitical Tensions

The crypto market is experiencing a downturn on August 14 due to hawkish monetary policies by the Bank of Japan (BoJ) and geopolitical tensions. The price of Bitcoin has dropped to retest $62,000, while Uniswap has seen significant losses among altcoins.

The BoJ's plans to raise interest rates during its September meeting have diverged from expectations that the US Federal Reserve will keep interest rates steady. Prediction markets now show a 27% chance of the Fed hiking rates after US PPI data fell to 4.5% in July.

The escalating tensions between the US and Iran are also reducing demand for risk assets, with oil prices rising to $81 per barrel. Additionally, Bitcoin ETFs posted $131 million in outflows on August 13, while Ethereum and XRP saw inflows of $6.72 million and $2.25 million, respectively.