Here’s the latest on Bitcoin’s price dip below $86,000 and how Bank of Japan (BOJ) concerns are feeding crypto market weakness:
📉 Bitcoin price snapshot
Bitcoin recently fell below $86,000, trading near this level amid renewed selling pressure across crypto markets.
Prices are down sharply from October’s peak (~$126,000) and are sitting around $87,000–$86,000 in normal trading.
🏦 Why BOJ concerns matter
Bank of Japan monetary policy expectations are contributing to risk-off sentiment in markets:
The BOJ is poised to raise interest rates to the highest level in decades, tightening what had been years of ultra-loose policy.
Markets are pricing in a likely rate hike, which historically reduces global liquidity and increases funding costs. This can pressure risk assets like Bitcoin.
Analysts warn that previous BOJ rate hikes coincided with 20–30% drawdowns in Bitcoin, as capital tied up in yen carry trades unwinds and liquidity drains from risk markets.
📊 Broader market factors
Aside from BOJ policy, other headwinds are also weighing on Bitcoin:
Risk-off sentiment globally (stocks, tech shares) is spilling into crypto as investors de-risk before major U.S. data and central bank meetings.
Technical indicators show bearish patterns and growing forced liquidations in derivatives markets.
Some analysts even speculate further downside if liquidity tightening continues, with extreme scenarios projecting prices under $70,000.
🧭 What traders are watching
BOJ’s next moves: The official rate decision (expected around mid-to-late December) could crystallize concerns about monetary tightening.
Risk asset sentiment: Direction of global equities and U.S. economic data updates (jobs, inflation) may influence crypto flows.
Liquidity indicators: Funding rates on exchanges and volume trends can offer early signs of renewed selling or potential relief rallies.
If you want, I can break this down further with a short price chart forecast and key support/resistance levels for Bitcoin
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