Japan Stock Market Triggers Crypto Crash

The decline in the crypto market mirrors a broader fall in stocks across Asia-Pacific. Japan’s Nikkei 225 index dropped by as much as 7%

The crypto market crashed on Monday as stock markets in Asia fell sharply and the US stock futures pointed to a lower open.

The Nikkei 225 index dropped by as much as 7%, continuing a downward trend that started last week when the Bank of Japan raised its key interest rate to the highest level in 16 years.

The Bank of Japan increased its interest rate to 0.25%, up from a previous range of 0% to 0.1%. This is the highest rate since 2008 and is part of a plan to tighten monetary policy, including cutting back on the purchase of Japanese government bonds.

Shortly after the market opened, the Nikkei index fell more than 2,400 points. Within an hour, it had dropped 12.3%, losing about 1,900 points.

BREAKING: Japan's Nikkei 225 ends trading day down 12.4%, the worst single-day result since 'Black Monday' in 1987

Many believe a US recession might be coming as the chances of a major economic downturn have increased.

Economist Peter Schiff says, “Central banks took big risks by keeping interest rates low for years, creating a large debt bubble. When inflation rose, higher rates burst that bubble. Now we have to face the fallout.”

Central banks have played with fire for years. Now the world is about to be burned. They kept interest rates artificially low, blowing up a global debt bubble. But as #inflation reared its head, rising rates pricked that bubble. Now it's time to pay the piper. The game is over.

The tech market is struggling, and the global economy is uncertain. On Monday, US stock futures fell sharply. Rising tensions between Iran and Israel are making the situation worse. This could also impact the cryptocurrency market as investors become more cautious.

Bitcoin (BTC) Price Fall

Bitcoin recently reached $70,000 but has now fallen to $50,350, a 17% decrease. In the last 24 hours, over $1.04 billion has been taken out of the crypto market. Out of this, $901 million came from investors who expected prices to go up, while $145 million came from those betting on prices going down.

Meanwhile, other cryptocurrencies, like altcoins, have also seen big drops. Ethereum's price has decreased by 20%, and many top altcoins have fallen between 15-20%.

This is the largest single-day drop since April 13. It happens as global markets are declining, with investors losing faith in major tech stocks in the U.S. and around the world.

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