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Bitcoin ditches $16K dip as ‘Leeroy Jenkins’ Bank of Japan flattens dollar

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Bitcoin ditches $16K dip as ‘Leeroy Jenkins’ Bank of Japan flattens dollar

Bitcoin dollar

Bitcoin Ditches $16K Dip as Bank of Japan Flattens US Dollar

The Bank of Japan is leading to a flattening of the US dollar, which is proving to be good news for Bitcoin investors. Against earlier expectations, BTC has managed to climb back up to the $16K mark, after a recent dip.

Leeroy Jenkins Effect

The sharp depreciation of the US dollar during Christmas week saw the BTC price fall to a two-week low of $15,750. What followed was something the market generally refers to as the “Leeroy Jenkins” effect – when high volatility results in wild fluctuations and sharp price increases.

Effect of BOJ Action

Just yesterday, the Bank of Japan announced that it would launch an outright purchase of US dollars as part of a new quantitative easing program. This move has caused the dollar to drop against major currencies, and Bitcoin has in turn benefitted from this.

What Can We Expect?

Experts believe that the BOJ’s decision could cause further weakening of the US dollar, and this could be a major factor in pushing the price of Bitcoin to new highs in 2021. Already, Bitcoin has broken the $17K mark, a new all-time high, and analysts predict that this trend is likely to continue in the near future.

Another factor that could contribute to a continued rise in the price of Bitcoin is institutional investment. With increasing acceptance of cryptocurrencies, more and more major companies are entering the arena, helping to boost investor confidence.

What This Means for Investors

For investors, this is a good time to be in the BTC market. Prices are likely to keep climbing in the near-term, which means those who invest now could benefit greatly.

Here are the key takeaways for investors:

  • The Bank of Japan’s decision to purchase US dollars is causing the greenback to weaken, and BTC has benefitted from this.
  • This trend is likely to continue in the near future, and Bitcoin could reach new highs in 2021.
  • Institutional investments in the cryptocurrency market are also increasing.
  • Investors who buy now could benefit greatly from BTC’s continued surge.

In a remarkable turn of events, the world’s most valuable digital asset Bitcoin (BTC) is beginning to rebound after a short-lived $16,000 drop.

The dip which had caused some concern among crypto-enthusiasts, was caused by a ‘Leeroy Jenkins’ move by the Bank of Japan wherein it announced that it would be actively intervening in the foreign exchange market to flat line the dollar’s appreciation against the yen.

However, what appeared to be bad news for Bitcoin, actually turned out to be great news as BTC started to rapidly climb back towards the $16,000 mark immediately afterwards.

The Bank of Japan’s actions came on the back of a strong rally in the greenback which had seen the dollar appreciating rapidly against some major world currencies, including the Japanese yen. In an effort to stop further appreciation of its currency, the BoJ decided to flood the international markets with greenbacks, thus reducing the value of what had been previously appreciated.

With the pressure now off the dollar, the BoJ’s actions have resulted in a much improved sentiment towards Bitcoin, and traders have been snapping up the digital asset in anticipation of the currency reverting back towards the higher end of its recent range.

The surge in demand for Bitcoin means that the world’s leading cryptocurrency is once again looking to punch through both2017’s highest as well 2019’s lowest prices, in what could potentially be a remarkable turnaround in the digital asset’s fortunes.

With its valuation now firmly above the $16,000 mark, Bitcoin looks set to continue its path towards a more mainstream adoption, and many experts are now speculating that its value could ultimately reach the $20,000 benchmark.

Of course, investors and traders remain cautious of the future of Bitcoin, but it appears that the BoJ’s actions have somewhat alleviated some of the downward pressure on the currency and this has improved the overall sentiment.

Whether or not Bitcoin will reach the coveted $20,000 mark remains to be seen, but one thing is for certain – its recent rebound is as miraculous as it is welcome.

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