🚩Bitcoin fell to the level of $85,000 on December 15, extending its recent decline as global macroeconomic risks, deleveraging, and scarce liquidity collided. The drop wiped out more than $100 billion from the total crypto market capitalization in just a few days, raising questions about whether the sell-off has ended.
Although no single catalyst caused the movement, five overlapping forces pushed Bitcoin down and could keep pressure on prices in the short term.
Fears of the Bank of Japan's rate hike sparked a global sell-off
The biggest macroeconomic driver came from Japan. Markets moved in anticipation of a widely expected Bank of Japan rate hike later this week, which would bring Japanese policy rates to levels not seen in decades.
Even a modest hike matters because Japan has long fueled global risk markets through yen carry trading.
For years, investors borrowed cheap yen to buy higher-risk assets like stocks and crypto. As Japanese rates rise, that trade unwinds. Investors sell risk assets to pay off yen-denominated liabilities.
Bitcoin has reacted sharply to previous BOJ hikes. In the last three occasions, BTC fell between 20% and 30% in the following weeks. Traders began to price in that historical pattern ahead of the decision, pushing Bitcoin lower in advance.
U.S. Economic Data Reintroduces Policy Uncertainty
At the same time, traders pulled risk ahead of a dense set of U.S. macro data, including inflation and labor market figures.
The Federal Reserve recently cut rates, but officials indicated caution about the pace of future easing. This uncertainty matters for Bitcoin, which has been trading increasingly like a macro-sensitive asset to liquidity rather than an independent hedge.
With inflation still above target and labor data expected to weaken, markets struggled to gauge the Fed's next move. That hesitation reduced speculative demand and caused short-term traders to step back.
As a result, Bitcoin lost momentum just as it approached key technical levels.
High-Leverage Liquidations Accelerate the Decline
Once Bitcoin broke below $90,000, forced selling took over.
More than $200 million in leveraged long positions were liquidated in a matter of hours, according to derivative data. Long traders had crowded into bullish bets following the Fed's rate cut earlier this month.
When prices fell, liquidation engines sold Bitcoin automatically to cover losses. That selling pushed prices lower, triggering more liquidations in a feedback loop.
This mechanical effect explains why the move was rapid and sharp rather than gradual.
The timing of the sale exacerbated the situation.
Bitcoin broke down during weekend trading, when liquidity is typically lower and order books are thin. In those conditions, relatively small sell orders can move prices aggressively.
Large holders and derivative desks reduced exposure to low liquidity, amplifying volatility. That dynamic helped drive Bitcoin from the $90,000 range towards $85,000 in a short period.
Weekend breakdowns often appear dramatic even when broader fundamentals remain unchanged.
Stress in the market structure was exacerbated by the substantial sale from Wintermute, one of the largest market makers in the crypto industry.
During the sell-off, on-chain and market data showed Wintermute offloading a large amount of Bitcoin — estimated at over $1.5 billion — through centralized exchanges. The firm was reported to have sold BTC to rebalance risk and cover exposure following recent volatility and losses in derivative markets.
Because Wintermute provides liquidity in both spot and derivative markets, its sale had a disproportionate impact.
The timing of the sales also mattered. Wintermute's activity occurred during low liquidity conditions, amplifying downward moves and accelerating Bitcoin's fall towards $85,000.
What Happens Next?
Whether Bitcoin falls further now depends on macro continuity, not specific crypto news.
If the Bank of Japan confirms a rate hike and global yields rise, Bitcoin could remain under pressure as carry trades unwind further. A strong yen would increase that pressure.
However, if markets fully price in the move and U.S. data softens enough to revive rate cut expectations, Bitcoin could stabilize after the liquidation phase ends.
For now, the sale on December 15 reflects a restart driven by macro factors, not a structural failure of the crypto market — but volatility is unlikely to fade quickly.
