The crypto market is under pressure due to a mix of technical, AltcoALTCd institutional factors. A major concern is the $23B Bitcoin options expiry on Dec 26, increasing uncertainty and short-term volatility. Bitcoin has slipped below $86K and is down nearly 30% from its October high, while other majors like XRP also struggle, showing broad market weakness.
Macro conditions add stress as the Bank of Japan raised rates to 0.75%, risking an unwind of the yen carry trade that previously fueled risk assets like crypto. Softer U.S. CPI data sparked only a brief rally, proving sentiment remains fragile.
On the positive side, Coinbase notes a sharp drop in excessive leverage, meaning unhealthy speculation has been cleared. However, institutions have taken profits, adding selling pressure. Overall, the market is corrective and volatile, where risk management is key and small-cap tokens may see sharp moves both ways.
