Bitcoin and the broader cryptocurrency market have faced selling pressure on Monday, with BTC down nearly 2% to $64,536. The decline comes amid a sharp 5% drop in Japan’s Nikkei 225 index and concerns over potential interest rate hikes following Shigeru Ishiba’s victory last week. Top altcoins like Ethereum and BNB have also slumped, while meme coins like Dogecoin and Shiba Inu saw even steeper corrections.

The recent rally that pushed Bitcoin above $65,000 has hit resistance as geopolitical uncertainties weigh on markets. Crypto analytics firm Santiment noted extremely bullish social sentiment around Bitcoin, with 1.8 positive posts for every negative one. Historically, such extreme sentiment often precedes price moves in the opposite direction.

Altcoins faced similar selling pressure, with ETH, BNB, DOGE and others down over 2%. XRP bucked the trend with a 5.3% gain to $0.645. Meme coins were hit hardest, with DOGE and SHIB falling 5-8%.

Markets remain volatile ahead of upcoming US jobs data and the anticipated “Uptober” rally. Despite near-term headwinds, there’s still strong anticipation that Bitcoin could see a major Q4 rally, with some traders eyeing $100,000 before year-end.

The Nikkei’s sharp drop comes as the yen strengthens against the dollar. Analysts speculate Ishiba’s win could lead to a more hawkish Bank of Japan policy, though his current stance on monetary policy remains unclear.

With macro uncertainties persisting, cryptocurrency markets may see continued volatility in the short-term. However, many remain optimistic about Bitcoin’s longer-term prospects heading into Q4.