Overview
- Bitcoin briefly fell to about $85,400 in early Tuesday trading before rebounding near $87,000, extending a mid-December pullback from recent highs above $92,000.
- Roughly $650 million in crypto positions were liquidated over 24 hours, including about $169 million in Bitcoin longs, as elevated leverage amplified the drop, according to CoinGlass data.
- Traders linked the weakness to tightening liquidity signals, with expectations of a BoJ rate hike and the Fed’s cautious forward guidance pressuring risk appetite.
- Spot Bitcoin ETF demand has cooled, with about $3.5 billion in November outflows and additional net outflows reported in December, removing a key structural bid.
- Analysts flagged options-market dynamics—especially covered-call selling by large long-term holders—as a headwind that can cap rallies, and several now see a plausible near-term test of the $80,000 area absent a positive macro catalyst.