Risk Assets Tumble as Bitcoin Drops on Hawkish BoJ Fears

Global risk assets including stocks and cryptocurrencies are sliding amid growing concerns about hawkish Bank of Japan policy shifts. Bitcoin's sharp decline is serving as a leading indicator of risk-off sentiment, with spillover effects visible across forex markets. The correlation between crypto weakness and traditional currency movements highlights interconnected market dynamics. Safe-haven currencies like the Japanese yen and Swiss franc are benefiting from the risk aversion, while commodity currencies face selling pressure. The rapid shift in market sentiment underscores how BoJ policy expectations can trigger broad-based deleveraging. Technical indicators suggest further downside potential if risk sentiment continues deteriorating. Forex traders should expect increased volatility in risk-sensitive pairs and potential continuation of safe-haven flows. The market's reaction demonstrates the significant impact of central bank policy divergence on cross-asset correlations.