TL;DR
- Bitcoin dropped from $91,000 to $85,000 within a few hours following the release of adverse macroeconomic factors in Asia and signals of large fund sell-offs.
- Comments from the Bank of Japan and the contraction in China’s non-manufacturing PMI triggered risk aversion, accelerating selling pressure.
- Potential BTC sales by Strategy fund caused panic and forced liquidations, increasing volatility and reinforcing market uncertainty.
Bitcoin started December under strong bearish pressure, falling from $91,000 to around $85,000 in a matter of hours and erasing most of the previous week’s gains. The correction coincided with a combination of adverse macroeconomic developments in Asia and signals of large fund sell-offs, which intensified uncertainty in the crypto markets.
The Bank of Japan surprised with a more hawkish stance than expected, raising the likelihood of a rate hike and pushing the two-year yield to 1%. Meanwhile, China’s non-manufacturing PMI showed contraction for the first time in nearly three years, raising doubts about the strength of the regional economy. These events triggered risk aversion during the Asian session and accelerated selling pressure on Bitcoin, even as U.S. macro fundamentals remain supportive.
Negative sentiment intensified following comments from Phong Le, CEO of Strategy fund, who warned that BTC could be sold if its NAV fell and funding options dried up. The potential for forced liquidations of leveraged long positions triggered panic, increasing volatility and reinforcing pressure on the price. The combination of these macro and micro signals showed that markets react quickly to changes in liquidity and the decisions of large players.
Bitcoin Still Searching for Direction and Fails to Consolidate
After a 15% rebound from recent lows of $81,000, Bitcoin appeared ready to consolidate, but the pullback shows that the market is still seeking direction. The coming days will be decisive in determining whether BTC can hold current levels or continue the correction. Its performance will depend on buyers’ ability to defend recent support levels and on the interaction between Asian macro factors and flows from large funds.
Bitcoin’s volatility reflects its sensitivity to macroeconomic news and strategic fund movements. If conditions in Asia do not improve and pressure on funds like Strategy persists, the likelihood of further adjustments remains high. Traders and institutional investors will closely monitor the $85,000–$86,000 range to determine their exposure, while the market seeks to establish a new equilibrium before year-end.
Bitcoin demonstrates once again that even when U.S. macro fundamentals are positive, external shocks and strategic decisions by large funds can generate sharp moves, making clear that the market’s sensitivity to liquidity and risk remains a critical factor
