๐ Why did Bitcoin drop to $85,000? 5 factors of pressure
On December 15, Bitcoin ($BTC ) fell to the mark of $85,000, erasing more than $100 billion in market capitalization in just a few days. This was not a coincidence โ the market was hit by a 'perfect storm' of macroeconomic and technical factors.
๐ช 5 reasons for the decline:
Fear of the Bank of Japan's rate: The expected rate hike in Japan prompts unwinding of the 'carry trade'. Investors are selling risk assets (including crypto) to pay off debts in the appreciating yen. Historically, after such moves, BTC has fallen by 20-30%.
Uncertainty of the US Federal Reserve: Investors are concerned about new data on inflation and the labor market. The Fed signals caution in lowering rates, which impacts liquidity, to which BTC is extremely sensitive.
Cascade of liquidations: Breaking the $90,000 level led to forced closures of long positions totaling over $200 million. This created a domino effect: sales provoked new declines.
Thin weekend market: The crash occurred with low weekend liquidity, where even small orders trigger aggressive price jumps.
Pressure from Wintermute: The largest market maker, Wintermute, sold BTC worth about $1.5 billion to balance risks, which accelerated the decline to $85,000.
๐ฎ What's next?
The further fate of BTC depends on the macroeconomics. If the Bank of Japan confirms a hawkish stance, pressure will persist. However, with the stabilization of the situation in the US and the end of the liquidation phase, Bitcoin may find a bottom.
This is not a crash, but a macroeconomic reboot. Stay calm and watch the levels!
$BTC
