SKN | Crypto Markets Dip as BTC Slides Below $85,000 — What Investors Should Watch Today

U.S. equity weakness and mounting global macro pressures weighed heavily on the crypto market today, sending Bitcoin (BTC) sharply lower. As risk‑off sentiment spread, digital assets broadly declined — underlining the market’s increasing sensitivity to macroeconomic and liquidity conditions.

Market Reaction: BTC and Broad Sell‑off in Crypto

Bitcoin plunged nearly 5 percent in early Asian trading, sliding to around $85,000 — one of its lowest levels since late 2025. This drop triggered large-scale liquidations, with derivatives platforms reporting roughly $500–$650 million in long positions wiped out within hours.
The sharp dip dragged down other major cryptocurrencies, with the broader market falling in sync as investors rushed toward safer assets. Lower volumes and thinning order books exacerbated the move, highlighting current fragility in crypto liquidity.

Macro and Policy Pressures: Yen, Rate Expectations, and Risk-Off Wave

Analysts are attributing part of the pressure to rising expectations of a rate hike by the Bank of Japan (BoJ) — a development that could destabilize carry trades and push risk assets lower.
At the same time, uncertainty surrounding global interest-rate trajectories, especially with a possible tightening cycle and persistent inflation in major economies, is fueling risk‑off behavior. This macro backdrop is prompting many investors to reduce exposure to high-volatility assets, weighing on demand for crypto.

Investor Sentiment and Strategic Behavior: From Leverage to Caution

The magnitude of liquidations suggests many participants entered December with elevated leverage, perhaps betting on year-end rallies. With leverage unwound, a wave of forced selling has forced others to reassess positions — especially in high-beta or crypto-linked equities.
This deleveraging seems partly driven by shifting institutional appetite. Diminished inflows into spot ETFs and increased demand for traditional safe havens illustrate a shift from speculative risk toward capital preservation.
Psychologically, the sharp drop could trigger deeper caution, discouraging fresh speculative bets until macro clarity returns. Long-standing holders may hold, but newer entrants may stay sidelined, waiting for stability or clear catalysts.

Looking Ahead: What Could Bring Stability — or More Turbulence

In the near term, markets will likely focus on upcoming global economic data and central bank signals. Any hawkish comments — or surprise rate moves — could prolong the bearish pressure on risk assets, including cryptocurrencies.
On the flip side, stabilization in macroeconomic indicators, reduced volatility in traditional markets, or renewed inflows into crypto could restore confidence. Key technical levels — such as Bitcoin holding support near $80,000–$85,000 — will also be critical to watch.
Investors may increasingly emphasize risk management, liquidity, and portfolio resilience over high-risk, high-reward plays — at least until volatility subsides and directional clarity emerges.