Overview
- Bitcoin slipped below $86,000 in early trading and repeatedly tested the $85,000 area, leaving the price roughly 30% below October’s peak near $126,000.
- Roughly $600–$652 million in crypto positions were liquidated over 24 hours, with long positions bearing most losses and Ethereum seeing more liquidations than Bitcoin.
- Traders pointed to expectations of a Bank of Japan rate hike and cautious Federal Reserve guidance, with a busy U.S. data calendar heightening liquidity and positioning risks.
- Spot Bitcoin ETF flows have softened, including about $3.5 billion in outflows in November and further net outflows so far in December, removing a key source of demand.
- On‑chain and market structure signals flagged fragility, with short‑term holder SOPR below 1, CryptoQuant’s IFP turning red, elevated leverage, and analysts citing covered‑call selling and market‑maker hedging as persistent headwinds.