BITCOIN FALLS AMID BOJ RATE-HIKE EXPECTATIONS
$XRP Price Drop: Bitcoin experienced a sharp 8% drop, falling from over $90,000 to below $84,000 amid broad market de-risking and significant liquidations.
Key Catalyst: The decline is primarily driven by expectations of a Bank of Japan (BOJ) interest rate hike, forcing investors to unwind "yen carry trades" and sell risk assets like BTC
Technical Picture: Market sentiment has plunged into "Extreme Fear," with the index at 16. Bitcoin is holding critical support around $84,000 after the fall, with major resistance near $93,000.
Market Overview
Bitcoin is trading around $86,778 after a sharp sell-off from an intraday high of $90,379 to a low of $84,005, an 8.17% drop.
The downturn triggered over $564 million in long position liquidations, with Bitcoin accounting for $188.5 million.
The 24-hour trading volume is approximately $83.24 billion, and the Fear & Greed Index has fallen to 16, indicating "Extreme Fear."
Core Driving Factors
The primary catalyst is the anticipated Bank of Japan (BOJ) rate hike, causing investors to unwind "yen carry trades" and sell risk assets like BTC.
U.S. Bitcoin spot ETFs saw a minor net inflow of $8.5 million on Dec 1, but significant outflows in late November suggest institutional caution.
Technical Analysis & Trading Strategy
Critical support is in the $83,000-$84,000 range; failing to hold this could lead to a drop towards $80,000, while major resistance is at $93,000.