The Bank of Japan Governor Haruhiko Kuroda on Tuesday expanded its target range for 10-year yields to 50 basis points from 25 to add flexibility to the central bank’s monetary policy. However, this caused global stock markets to fall sharply. The U.S. Dollar Index (DXY) falls to 103.96 and futures tied to Dow Jones, S&P 500, and Nasdaq 100 are down nearly 1%. The crypto market also reacted to it.
U.S. economist Peter Schiff stated the Bank of Japan pivoting in the opposite direction means more hikes are coming. In the U.S., it means the Dollar and asset prices will fall and inflation will rise in 2023.
How It Impacted Crypto Market
The crypto market stabilized slightly after Bitcoin and Ethereum prices jumps over 2% from the bottom. However, the Bank of Japan monetary policy change could impact crypto prices in 2023.
Bitcoin (BTC) price currently trades at $16,816. The 24-hour low and high are $16,398 and $16,8362, respectively. The trading volume has increased by nearly 65% in the last 24 hours. The further decline in the U.S. dollar as Yen strengthens could raise prices in short term.
Ethereum (ETH) price is currently trading at $1,207, moving up over 2% in the last 24 hours. The 24-hour low and high are $1,160 and $1,210, respectively. The trading volume rose nearly 50%.
Altcoins such as Dogecoin, Shiba Inu, Cardano, and XRP have witnessed some upside moves as a result of Bitcoin and Ethereum prices jumping higher.
Analysts Prediction for the New Year 2023
Crypto analyst Scott Melker or The Wolf Of All Streets said BOJ tightening is pushing more uncertainty in the market. “The Bank of England broken and Bank of Japan broken,” he tweeted.
Rekt Capital earlier suggested that Bitcoin price holding the $17,150 level will be crucial for Bitcoin and altcoins. If Bitcoin closed the month below the support levels, a move toward $13,900 can be seen.
Ethereum and altcoins will follow suit and dive lower if the BTC price fails to hold the crucial support level.
Also Read: Bitcoin (BTC) Price Hits A New Monthly Low, Further 20% Decline Possible
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.