Japanese Yen appreciation and BTC trendline breakdown | Cryptocurrencies face multiple risk shocks

The shift in the Japanese Yen trend is profoundly affecting global asset allocation, and Bitcoin’s recent volatility is a microcosm of this macro environment. BTC recently broke below the short-term trendline again, dropping straight from $95,000 to a low of $91,000, then temporarily stabilizing at the $93,000 level. This wave of correction not only reflects technical weakness but also deeper market panic driven by escalating geopolitical tensions and changes in central bank policies.

Escalating Geopolitical Tensions Make Crypto Markets the Primary Selling Target

Recently, Trump imposed a 10% tariff on Denmark and other European countries, which boosted market risk aversion. Meanwhile, gold prices hit a new high, breaking through $4,600 per ounce, fully reflecting investors’ concerns about risk assets. As the most volatile category among risk assets, cryptocurrencies naturally became the preferred target for institutional investors to sell off. When U.S. holidays coincide with geopolitical risks, this selling pressure becomes even more apparent.

Forced Liquidation Data Reveals Market Panic Level

The intensity of this correction can be seen from forced liquidation data. The altcoin market experienced a significant collective decline, with over $860 million in positions forcibly liquidated, including $780 million from long positions. This indicates that leveraged positions in the market triggered chain liquidations during rapid price drops, further accelerating the downward trend. The scale of these forced liquidations suggests that current crypto market participants are still underpricing risk.

Japan’s Rate Hike Boosts the Yen; BTC May Test $91,000 Again

Another key variable influencing the Yen trend is Japan’s rate hike decision. The Bank of Japan’s rate hike has strengthened the Yen, which increases the cost of Yen-denominated assets and impacts global liquidity. Additionally, this week will see the release of Japan’s interest rate decision, a critical moment that could cause market sentiment to fluctuate amid uncertainty. Considering geopolitical events such as Iran tensions and Japan dissolving the House of Representatives happening within the week, market panic may continue to escalate, and BTC could once again test the $91,000 support level.

Technical Breakdown, Risks Remain in the Market

From the daily chart, BTC has fallen below the short-term trendline again, indicating further downside potential. Although a rebound may occur midweek, influenced by weekend risk aversion, any rally could be met with a new wave of selling. Currently, BTC is fluctuating around $90.11K, with a 24-hour low of $87.26K, showing that bearish momentum remains strong. The key focus moving forward is whether BTC can hold the $90,000 psychological level; if it fails, the combined effect of Yen appreciation and risk aversion could deepen the correction in the cryptocurrency market.