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Bitcoin Slides on Japan Rate Hike Bets, With $692 Million in Crypto Liquidations

The next move hinges on the Bank of Japan’s meeting, even with fresh corporate buying offering a counterpoint.

Overview

  • Bitcoin fell about 2.8% to roughly $85,340, its lowest level since December 1, as risk appetite weakened across crypto markets.
  • Traders absorbed $692.4 million in liquidations over 24 hours, including $230 million tied to Bitcoin, with most losses coming from long positions, according to CoinGlass.
  • Markets widely expect the Bank of Japan to raise rates by 25 basis points this week, a shift that could unwind yen-funded carry trades and pressure risk assets.
  • Analysts note that previous BoJ hikes preceded Bitcoin drops of roughly 23% to 30%, and some projections suggest a potential pullback toward about $59,500 if selling persists.
  • Against the volatility, Strategy disclosed to the SEC that it bought 10,645 BTC last week, lifting its total holdings to 671,268 BTC.