Bitcoin plummeted below $85,000 today, but the $600 million liquidation figure hides a much scarier macro catalyst
Bitcoin dropped below $85,000, causing $600 million in liquidations, primarily driven by fears of a Bank of Japan interest rate hike.Summary
Bitcoin fell below $85,000, leading to nearly $600 million in long position liquidations across crypto markets within 24 hours. The primary catalyst for this selloff is renewed market expectation that the Bank of Japan (BoJ) will tighten monetary policy this week, threatening the yen carry trade that often funds risk assets. Previous BoJ tightening moves have historically coincided with sharp Bitcoin drawdowns. This macro pressure compounds existing headwinds, including a 'sell-the-news' reaction following the Federal Reserve's hawkish outlook and cooling tech/AI stock performance, which typically lifts crypto. The drop was amplified by thin liquidity during Asian trading hours as leveraged long positions were stopped out in waves after Bitcoin broke key support levels like $90,000.
(Source：CryptoSlate)