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The crypto market turned red today as the majority of tokens recorded almost no gains over the past 24 hours. Sentiment weakened sharply after Bitcoin fell $2,000 in just 35 minutes, wiping out $40 billion from its market cap. More than $132 million in long positions were liquidated within an hour as volatility returned to the market.
Bitcoin Leads the Market Decline
Bitcoin traded near $90,349, down 0.41% on the day, with its weekly performance slipping 1.82%. Trading activity remained high, with over $78 billion in 24-hour volume.
Ethereum followed the same trend, trading at $3,088, down 03% in the past day. Most top altcoins showed the same weak tone, including BNB at $878, XRP at $1.99, and Solana at $133.
Why Markets Are Dropping
The sharp sell-off appears to be linked to expectations around the Bank of Japan’s upcoming rate decision on December 19. The market is pricing in a potential rate hike next week and more in 2026. Historically, Japanese rate increases have put pressure on global risk assets, including crypto.
The Federal Reserve recently delivered one of its most supportive updates in years, signaling three rate cuts in 2025, confirming that quantitative tightening has ended, and noting that inflation is cooling. Despite this, crypto remains under pressure while stocks, gold, and silver continue to rise.
Emotion Driving the Market
Analysts like Ash Crypto say the current price movements appear to be driven more by fear and uncertainty than fundamentals. The sudden swings have created frustration among retail traders, while larger institutional players continue to accumulate quietly during downturns.
Many expect volatility to persist ahead of next week’s Bank of Japan decision, which could set the tone for crypto markets for the rest of the month.