Analysis: The expectation of interest rate hikes by the Bank of Japan and the decline in Nasdaq futures have led to a crash in the cryptocurrency market

ChainCatcher news, according to Coindesk, due to Nasdaq futures indicating a continued decline in tech stocks and the strengthening yen raising concerns about a similar risk-averse sentiment in August, Bitcoin fell below $89,000 during Tuesday's early European session. Data shows that Bitcoin dropped to a low of $88,500, the highest level since mid-November.

Nasdaq futures fell by 0.3%, indicating that the trend of declines for three consecutive days will continue. Since February 18, the tech stock index has dropped over 4%. The safe-haven currency yen is trading at 149.38 against the dollar, poised to challenge the nearly three-month high of 148.84 set on Monday.

As the market bets on the Bank of Japan raising interest rates, the yen has risen nearly 6% in six weeks. The comments on interest rate hikes from the Bank of Japan and the strengthening yen evoke memories of last July: at that time, the yen soared due to the central bank's rate hike, ultimately triggering widespread risk-averse sentiment that caused Bitcoin to plummet from about $65,000 to $50,000 within days.