Bitcoin’s recent fall isn’t random — several factors combined to push prices lower:
🔹 Heavy sell-offs & liquidations: Large leveraged long positions were wiped out as price broke key support, triggering stop losses and further selling pressure.
🔹 Macro uncertainty: Shifts in U.S. economic data and weaker expectations for rate cuts made investors less willing to hold risk assets like BTC.
🔹 Japan Rate-Hike Impact (Important): Rising expectations of a Bank of Japan rate hike strengthened the yen and forced traders to unwind yen carry trades. Since borrowed yen was often used to invest in risk assets (including Bitcoin), this unwinding added selling pressure across crypto.
🔹 Thin liquidity & market fragility: Low liquidity in December’s holiday season made BTC more sensitive to price swings and sharp moves.
🔹 Broader crypto sell-off: The decline wasn’t isolated — many tokens fell alongside BTC, wiping out substantial market cap and amplifying fear.
💡 Takeaway: This dip reflects technical breakouts, risk-off sentiment, and market structure, not just one isolated event. BTC may recover if liquidity and sentiment improve, but right now volatility is high.
(Not financial advice — just what the market trends show.)