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Bitcoin has once again fallen below the crucial $90,000 mark, raising concerns among investors about near-term volatility in the cryptocurrency market. On December 15, Bitcoin was trading at around $89,608, marking a decline of 0.62% over the past 24 hours. During early Asian trading hours, the world’s largest cryptocurrency even slipped to an intraday low of $87,996 before recovering slightly. As a result of this drop, Bitcoin’s total market capitalization shrank by nearly $130 billion to about $2.98 trillion.

While the fall may appear modest on the surface, market experts say it reflects deeper signs of weakness, driven by global liquidity concerns, heavy liquidations, and caution ahead of key central bank decisions.

Heavy Liquidations Signal Weak Sentiment

According to Riya Sehgal, Research Analyst at Delta Exchange, the recent decline was accompanied by a sharp rise in liquidations. Nearly 116,000 trades were liquidated within 24 hours, leading to losses exceeding $295 million. This points to excessive leverage in the system and a fragile market sentiment.

Sehgal noted that Bitcoin is currently consolidating in a broad range between $87,500 and $91,000. Such sideways movement after a strong rally often signals uncertainty and weakening momentum. Ethereum, meanwhile, continues to trade between $2,900 and $3,180—still about 37.5% below its all-time high—indicating that the broader crypto market is yet to regain strong bullish confidence.

Bitcoin Fails to Hold the $90,000 Level

Market participants are closely watching Bitcoin’s inability to sustain levels above $90,000. Analysts believe this psychological barrier has now turned into a resistance zone. The failure to hold above this level has encouraged short-term traders to book profits, adding further pressure on prices.

Sehgal pointed out that expectations of tighter monetary policy in Japan may also be playing a role. Any tightening by major central banks typically reduces global liquidity, which negatively impacts risk assets such as cryptocurrencies.

Mixed Performance Across Major Cryptocurrencies

The weakness in Bitcoin was mirrored by mixed movements across other major crypto tokens. Over the past 24 hours:

• Ethereum gained 0.23%

• Cardano (ADA) fell by 0.73%

• Solana (SOL) slipped 0.21%

• XRP rose 0.82%

• Binance Coin (BNB) declined 0.50%

This uneven performance suggests selective buying rather than broad-based risk appetite, reinforcing the cautious mood in the market.

Japan’s Interest Rate Outlook Adds Pressure

One of the key factors weighing on sentiment is the upcoming policy decision by the Bank of Japan (BoJ). The central bank is expected to present its policy update later this week, with speculation growing around a possible interest rate hike.

Historically, Bitcoin has reacted negatively to rate hikes by the BoJ. Sehgal highlighted that since 2024, each instance of a rate increase in Japan has been followed by a 20–30% correction in Bitcoin prices. As a result, traders are increasingly risk-averse ahead of the announcement. Over the past 24 hours, the overall crypto market has declined by 1.01%, while it is down nearly 4.83% over the past month.

Asia vs West: Conflicting Monetary Signals

Nischal Shetty, founder of WazirX, explained that global markets are currently caught between opposing monetary trends. While Western economies are moving toward monetary easing, parts of Asia—including Japan—are leaning toward tighter policies. This divergence has created uncertainty across global markets, especially for high-risk assets like cryptocurrencies.

Shetty noted that expectations of further interest rate cuts in Western economies could eventually boost liquidity and support crypto prices. However, in the near term, capital outflows from Asian risk assets are putting pressure on the market.

Traders Remain Cautious, Await Better Conditions

Despite short-term headwinds, long-term optimism around crypto adoption in Asia remains intact. Structural reforms, a young population, and rising domestic consumption could drive increased interest in digital assets over time. However, for now, traders in the region are adopting a wait-and-watch approach.

Market experts believe that until there is more clarity on global interest rate policies and liquidity conditions, cryptocurrencies may continue to trade with heightened volatility. Bitcoin’s next decisive move is likely to depend on whether it can reclaim and sustain levels above $90,000 or break below key support zones.

Bottom Line

Bitcoin’s fall below $90,000 highlights the fragile balance between optimism and caution in the crypto market. Heavy liquidations, global liquidity concerns, and upcoming central bank decisions—especially from Japan—are keeping investors on edge. While long-term fundamentals may remain supportive, short-term price action suggests that traders should brace for continued volatility in the days ahead.

Disclaimer: Cryptocurrency prices are highly volatile. The views expressed are based on expert opinions and market data. Investors should consult certified financial advisors before making investment decisions.