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Bitcoin Tends to Weaken During Asian Trading, Following Bank of Japan Policy Shift

Traders already know the deal with acquiring Bitcoin – it’s mostly concentrated during European hours, North America is lagging behind, and Asia is inviting more sellers. The trading session in Asia of yesterday wasn’t an exception.

“Overnight, the Bank of Japan announced that they would reduce asset purchases in a move that signaled marginal tightening of policy. By the time European markets opened, they digested this news and immediately went into defensive move…[which also] put a damper on the strong price action in BTC,” declared Chad Steinglass, the head of trading at CrossTower, a digital asset trading company.

The Bank of Japan is thinking about discarding the 6 trillion yen purchase target of acquiring ETFs. The plan is for the ETF program to be used in cases of market turmoil, which can be seen as marginal tightening.

The fast risk-off reaction to the news coming from the Bank of Japan during Asian and European hours is actually normal.

“It’s not uncommon for Europeans to be more skittish than others. Since Lunar New Year, Asian markets have been relatively weak,” declared Steinglass. “Crypto will trade with risk [assets] intraday. Over the last few weeks, bitcoin has been affected by rocky markets, but has been resilient, which is encouraging.”

The recent price moves of bitcoin are consistent with what we’ve seen so far: “Every time we break into a new range, old resistance becomes support – consistently over the last several months,” concluded Steinglass.

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