The cryptocurrency market experienced a severe and rapid sell-off, with approximately $90 billion in market value evaporating within a single hour. The downturn was led by Bitcoin, which fell $2,000 in just 35 minutes, contributing to a total market cap loss of $40 billion for the asset alone. This triggered a cascade of liquidations, with over $132 million in long positions being liquidated within the hour as volatility spiked.
Bitcoin traded near $90,349, down 0.41% on the day, with its weekly performance declining 1.82%. Trading volume remained high at over $78 billion in 24 hours. Ethereum followed suit, trading at $3,088, down 3% on the day. Other major altcoins showed similar weakness, with BNB at $878, XRP at $1.99, and Solana at $133.
Analysts point to growing market anxiety surrounding the Bank of Japan's (BOJ) upcoming interest rate decision on December 19 as a primary catalyst. The market is pricing in a potential rate hike next week, with expectations for more in 2026. Historically, Japanese rate increases have exerted pressure on global risk assets, including cryptocurrencies. This sentiment overshadowed recent supportive signals from the U.S. Federal Reserve, which signaled three rate cuts in 2025 and confirmed the end of quantitative tightening.
Market observers, such as analyst Ash Crypto, suggest the price movements are being driven more by fear and uncertainty than fundamentals. The sudden swings have created frustration among retail traders, while larger institutional players are reportedly accumulating positions quietly during the downturn. Experts warn that volatility is likely to persist in the lead-up to the BOJ's decision, which could set the tone for crypto markets for the remainder of the month.
