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Bitcoin Sinks Toward $85,000 as Japan Rate Jitters Trigger Near-$1 Billion Wipeout

Rising Japanese yields are forcing a risk reset that meets thin ETF demand, leaving traders focused on $80,000 support into key U.S. data.

Overview

  • Bitcoin fell roughly 5%–8% with intraday lows near $84,000–$85,000, pulling total crypto market value back under $3 trillion.
  • Forced unwinds accelerated the drop, with Coinglass tallying about $962 million in 24-hour liquidations across more than 266,000 accounts.
  • Japanese government bond yields hit 17-year highs after BOJ signals of possible tightening, pressuring yen-funded carry trades tied to risk assets.
  • Weak spot Bitcoin ETF flows, a $9 million Yearn Finance exploit, and S&P’s downgrade of USDT’s stability assessment further eroded confidence.
  • Risk aversion bled into equities and futures, with tech shares slipping as traders gauge BOJ moves and upcoming Fed signals, while $80,000 emerges as a key BTC level.