Why is Bitcoin still falling? 🔥
As soon as the interest rate cut was announced, the market dumped hard.
BTC slipped back near 85k, ETH lost 3000, and mining stocks crashed 10%+. A brutal start to the week.
The main reasons — the “three-piece set”:
1. Yen Interest Rate Hike: The Invisible Killer
After 30 years, the Bank of Japan is likely to hike rates (97% probability). History shows: whenever Japan raises rates, BTC drops 20–30%.
Why? Cheap yen was used to buy risk assets like Bitcoin. Now positions are being force-closed. More hikes in 2026 + potential $550B ETF selling = pressure on all risk assets.
2. Federal Reserve: Dovish Talk, Hawkish Action
Rates are cut, but how many more cuts are left in 2026? Unclear.
If NFP or CPI disappoints, the Fed may turn quietly hawkish or even taper. Liquidity is uneven, and this hidden tightening is worse than obvious tightening.
3. On-Chain Selling Pressure
Over 400,000 mining machines shut down, hash rate dropped 17%.
Miners are forced sellers. Long-term holders are distributing, ETFs are seeing $350M daily outflows, and market makers are moving funds aggressively.
Summary:
• Yen carry trade collapsing
• Liquidity expectations failing
• Miners + old money exiting
This drop is justified.
Outlook:
85k is the key short-term level.
Dovish Japan + soft US data = bounce possible.
Otherwise, 80k is next.
Fasten your seatbelts, sip some tea, and watch the show — crypto never runs out of drama. 😏
