cryptocrash

Why Is Crypto Crashing Today: BOJ Rate Hike, Whale Sell-Off Behind?
Why is crypto crashing today at a time when December is usually known as “Bullcember”? Instead of year-end rallies, investors are witnessing sharp volatility and sudden sell-offs. The global cryptocurrency market cap is $3.06 trillion, down 1.3% over the past 24 hours, as indicated on CoinGecko. Total trading volume over a day is recorded at $106 billion, with Bitcoin dominance of 57.3% and Ethereum dominance of 11.7%.
Bitcoin and Ethereum, as well as other major altcoins, have been under pressure, prompting an important yet simple question: Why is market crashing and will it bounceback before the year end?
Why Is Crypto Crashing Today? Main Reasons for the Decline
Bank of Japan Interest Rate Decisions: One of the primary reasons for the crash of crypto market today is due to fear related to interest rate decisions by the Bank of Japan. A former board member of the BOJ, Makoto Sakurai, claimed that Japan could increase its core interest rate to 1.0% by mid-2026.
In this case, it leads to an appreciation of the yen and makes liquidity tighter in the global market. Risk assets like cryptocurrency generally react negatively to money policy tightening signals from central banks around the world.
The Increase in Gold Prices Draws Investment Capital Elsewhere: Another reason for the decline in the value of cryptos at present is the record-breaking increase in gold prices. According to The Kobeissi Letter, the gold futures have broken the all-time high of $4,500 an ounce. Gold has risen by more than 70% so far this year. This year's growth makes it gold’s best performance since 1979.

Source: The Kobeissi Letter
This is an indicator that investors are redeploying funds towards less-risky physical commodities. When fear escalates, funds usually migrate from risk-sensitive commodities like cryptocurrency to other safe havens like gold.
Bitcoin Price Crash and Whale Sell-Off Add Pressure: The effect of volatility is reflected in the prices as well. The price crash of Bitcoin affected the prices of this cryptocurrency, making it fall by 1.75% in a day to reach $87,224.28, while its market cap is $1.74 trillion. The decrease in the price of Ethereum was even steeper, declining by 2.50% to reach $2,953.32.

Source: CoinMarketCap Website
Smaller tokens suffered deeper losses. Audiera (BEAT) dropped 16%, Midnight (NIGHT) fell 10%, and Pump.fun ($PUMP ) slid 9%.
Whale activity added fear. Lookonchain reported that Whale 0xa339 sold 5,306 ETH worth $15.76 million and withdrew another 24,700 $ETH from Aave. Another whale sold PUMP at a 62% loss, increasing panic selling.

Source: Lookonchain X Account 
What Next for Crypto: Santa Rally 2025 Hope Still Alive?
While whales are selling, large players are accumulating. According to Lookonchain, Tom Lee’s Bitmine bought 29,462 ETH worth $88.1 million. Aave founder Stani Kulechov purchased 32,660 AAVE at $158, despite sitting on unrealized losses.
Trump Media also added 451 $BTC worth $40.3 million and now holds over $1.04 billion in Bitcoin. This is a demonstration of strong long-term confidence.
Conclusion
The question of Why is crypto crashing is all about fear, liquidity flows, and short-term market reaction. But institutional buying trends clearly point to this being a reset and not a dead end if market moods turn around. Even then, a “Santa rally 2025” or a “New Year” bounce is possible.
YMYL Disclaimer: Note that this article does not qualify as an investment advice. Investments in cryptocurrencies are fraught with risks of volatility. Thus, it can be beneficial to do research on the topic before investing.

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