Crypto Faces "Black December" as Bank of Japan Hawkish Comments Could Be Catalyst for Recent Sell-off

BlockBeats News, December 1st. The cryptocurrency market welcomed a "Black Monday" in December, with mainstream cryptocurrencies such as Bitcoin and Ethereum seeing a drop of over 5% in nearly 3 hours.

On the news front, Bank of Japan Governor Haruhiko Kuroda stated that if the economic activity and price forecasts are realized as expected, the Bank of Japan will continue to raise interest rates based on the improvement in the economy and prices. This statement triggered a widespread decline in the Asia-Pacific stock market during the early session.

President Trump stated yesterday that the selection of the Federal Reserve Chairman has been finalized. A brief post in the overseas markets last night claimed that Federal Reserve Chairman Jerome Powell will announce his resignation at an emergency meeting scheduled for Monday 7 p.m. Eastern Time.

In addition, the People's Bank of China held a meeting on November 28th to coordinate efforts to crack down on the speculation of virtual currency trading. The meeting emphasized that virtual currency does not have the same legal status as legal tender, lacks legal tender status, should not and cannot be used as currency in circulation in the market, and that virtual currency-related business activities constitute illegal financial activities. Stablecoins are a form of virtual currency that currently cannot effectively meet requirements such as customer identification and anti-money laundering, posing risks of being used for money laundering, fundraising scams, and illegal cross-border fund transfers.

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