Bitcoin (BTC) Takes Direct Hit from Yen Defense Cooperation...Could it Drop Below $60,000?

▲ Bitcoin (BTC) Drop

As Japan's joint yen defense and the shock of the Coldcard hacking overlapped, the cryptocurrency market capitalization plummeted to $2.14 trillion. At the same time, Bitcoin (BTC) was pushed down to the $62,700 level.

According to crypto media outlet BeInCrypto on August 3 (local time), the total cryptocurrency market capitalization decreased by 1.1% over 24 hours. As Japan is reportedly formalizing a joint currency response with the US for the first time in 15 years, concerns about the liquidation of yen carry trades have resurfaced. There is apprehension that funds invested in stocks and cryptocurrencies, borrowed at low-interest yen, could exit with the strengthening of the yen.

News of falling international oil prices and easing tensions in the Strait of Hormuz also failed to reverse investor sentiment. Bitcoin fell to around $62,700. The total cryptocurrency market capitalization briefly surpassed $2.16 trillion on Sunday but gave back its gains. BeInCrypto presented $2.12 trillion as the market's key support level.

A security incident involving the hardware wallet Coldcard also put pressure on the market. Hackers exploited a firmware flaw to steal approximately $89 million worth of Bitcoin from thousands of addresses starting July 30. The vulnerability was identified to have weakened the private key generation method of older devices since 2021. BeInCrypto analyzed that this incident shook confidence in self-custody methods.

Pump.fun (PUMP) fell by approximately 8% over 24 hours, recording $0.002. On a monthly basis, it is up approximately 26%. PUMP maintained an upward channel since June 25 but failed to break above it on August 2, succumbing to selling pressure. The weakening selling pressure since July 28 was presented as a factor supporting the price structure.

If PUMP holds $0.002, the upward channel rebound structure will be maintained. If it surpasses $0.0023, the next targets are $0.0024 and $0.0026. Conversely, if it gives up $0.002, it could fall to $0.0018. The cryptocurrency market faces key variables including yen movements, the $2.12 trillion support level, and the US employment report.

[Article Key Summary]

-News of Japan's joint yen defense stimulated concerns about yen carry trade liquidation, causing the cryptocurrency market cap to decrease by 1.1%.

-Approximately $89 million worth of Bitcoin was stolen due to a hack exploiting a Coldcard firmware flaw.

-PUMP fell by 8% in one day, and whether it holds the $0.002 support level was presented as a criterion for further decline or rebound.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*