Bitcoin Price Plunges Below $38,000 as Japan Holds Firm on Financial Easing

Bitcoin Price Drops Below $38,000 as Japan Maintains Financial Easing

The price of Bitcoin has experienced a significant decline, falling below $38,000. This drop in price is attributed to the launch of a physical ETF, contributing to a sustained downward trend. In just two weeks, Bitcoin’s price has dropped by over 16%, causing concern among investors and analysts.

Impact on Related Companies

The decline in Bitcoin price has not only affected the cryptocurrency market but also had an impact on related companies. Marathon Digital, a Bitcoin mining company, and Coinbase, the largest cryptocurrency exchange in the United States, both experienced negative effects. During trading, Coinbase’s stock price dropped by over 4%, leading to a downgrade in its investment rating by JP Morgan.

Bitcoin ETFs and Market Sentiment

Analysts attribute the price decline to increased selling pressure and negative investor sentiment following the conversion of Grayscale’s fund to an ETF. However, there is optimism regarding the listing of Bitcoin ETFs by BlackRock and Fidelity, as it is expected to bring in over $1 billion in funds and have a positive impact on the market.

Bank of Japan’s Monetary Policy Decision

In other news, the Bank of Japan has announced its decision to maintain its current large-scale monetary easing policy. This decision was made after considering the potential impact of recent earthquakes on the economy and financial markets. Bank of Japan Governor Kuroda mentioned the possibility of gradual inflationary pressures resulting from wage increases.

JP Morgan’s Response

JP Morgan expressed a cautious response to the Bank of Japan’s decision, particularly regarding the potential impact of Bitcoin ETFs on Bitcoin prices. While acknowledging the potential contribution of Bitcoin ETFs to price increases, JP Morgan stated that it may take longer than expected for these effects to materialize.

Monitoring the Developments

The news of Bitcoin’s decline and the Bank of Japan’s decision to maintain monetary easing policies have garnered significant attention in the financial market. Investors and analysts will continue to monitor the development of cryptocurrencies, as well as the economic environment in Japan, to assess their potential impact.

Overall, the decline in Bitcoin price and the decision of the Bank of Japan to maintain its monetary easing policy are significant developments that will shape the financial landscape in the coming days.