Why did the Bank of Japan's interest rate hike strike Bitcoin first?Author: David, Deep Tide TechFlow
On December 15, Bitcoin fell from $90,000 to $85,616, a single-day drop of over 5%.
There are no significant incidents or negative events on this day, and on-chain data does not show any unusual selling pressure. If you only look at news from the cryptocurrency sphere, it’s hard to find a "reasonable" explanation.
On the same day, the gold price was $4,323 per ounce, down only $1 from the previous day.
One dropped by 5%, while the other barely moved.
If Bitcoin is truly "digital gold" and a tool for hedging against inflation and fiat currency devaluation, then its performance in the face of risk events should resemble that of gold. However, this time its trend clearly resembles that of high beta tech stocks in the Nasdaq.
What is driving this round of decline? The answer may lie in Tokyo.
The Butterfly Effect of Tokyo
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