There is some news coming that will surely affect the crypto market. This is one of the main problems in crypto taht every news from around the world can have a strong impact.
Any news from a country where many people use crypto can easily affect the market like US. Any news from this country shakes the crypto market.
This is breaking news that the Bank of Japan has confirmed that they will increase the interest rate by 75 BPS within the next three days. This is not good news for the crypto market.
However it is good news for Japanese citizens because they will now earn more interest by keeping their money in banks.
Lets understand interest rates and how they affect the market. You have probably noticed that whenever the FED changes the interest rate the crypto market reacts sharply either going up or down.
This happens because when interest rates rise, the government wants investors to put their money in banks to earn higher interest.
Naturally when interest rates are high investors prefer to put their money there. On the other hand when interest rates are lowered banks offer less profit so investors look for other places where they can earn more.
Now what will be the effect of Japan’s news about increasing the interest rate by 75 BPS? Japan is a strong economical country but it does not have a big impact on the crypto market because there are fewer crypto users as compared to other countries.
So, I dont think this news will affect the crypto market much. The market may start recovering the next day after the news.
THANK YOU!
lets see...