Haciyev Reşit 
The crypto market faced a sharp sell-off on the last trading day of the week, with Bitcoin and many altcoins falling by 5–10%. The primary drivers behind this sudden decline are global macroeconomic developments, particularly signals from the Bank of Japan (BOJ) that it may raise interest rates—triggering a rapid pullback from risk assets.
Sharp Sell-Off in Bitcoin and Altcoins
Bitcoin dropped below the $92,000 level as tighter global liquidity conditions and BOJ rate-hike expectations weighed on markets. Major altcoins followed a similar path, with selling pressure accelerating across the board. While the move looked abrupt, markets had been building pressure as investors began pricing in a potential shift in Japan’s long-standing ultra-loose monetary policy.
BOJ Rate Signals Are Draining Global Liquidity
Investor sentiment weakened notably after reports suggested the BOJ could raise rates at its December 18–19 meeting. Japanese government bond yields jumped, prompting broader risk-off behavior globally.
For years, Japan’s ultra-low interest rates provided cheap liquidity that flowed into risk assets such as equities and cryptocurrencies. As expectations shift toward tighter policy, that liquidity is being withdrawn. This has led to deleveraging, reduced exposure to high-risk assets, and widespread selling in crypto markets.
Key Bitcoin Support Levels Broken
The decline accelerated after Bitcoin lost the critical $92,000 support level. Breaking this zone triggered liquidations in derivatives markets, amplifying downside momentum—especially under thin liquidity conditions.
Market watchers are now closely monitoring the $86,000 level. If selling pressure continues, Bitcoin could revisit the $78,000–$80,000 range. While a short-term bounce into the holiday period isn’t ruled out, many analysts expect weakness could persist into January before a more durable recovery forms.
Another factor intensifying the move was the quarterly options expiry on December 19, which often increases volatility. If the BOJ confirms a rate hike, markets could see an additional short but sharp wave of selling. Conversely, if the hike is delayed, risk assets may experience a brief relief rally into month-end.
Overall Market Outlook
This sell-off underscores how closely crypto markets are tied to global financial conditions. The downturn is not driven by crypto-specific issues but by liquidity reallocation, interest-rate expectations, and central bank policy uncertainty.
As long as questions around global monetary tightening and funding costs remain, volatility is likely to stay elevated. Investors should continue to closely monitor macroeconomic developments—especially central bank decisions—as they remain key drivers of crypto price action in the near term.