Bitcoin Starts December Under Pressure as Macro Fears Trigger Sell-Off Bitcoin began the first week of December facing significant selling pressure, with its price dipping toward the $85,000 mark. This downward move was primarily triggered by renewed anxiety in traditional financial markets, specifically surrounding the monetary policy of the Bank of Japan. Market analysts point to growing speculation that the Bank of Japan may finally move away from its long-held negative interest rate policy. For years, this ultra-loose policy has facilitated the so-called yen carry trade, where investors borrow cheap Japanese yen to invest in higher-yielding assets globally, including risk assets like cryptocurrencies. The potential for a rate hike in Japan threatens to unwind this popular trade. If it becomes more expensive to borrow yen, investors are forced to sell their riskier holdings to repay those loans. This creates a wave of selling across various markets, and Bitcoin, often viewed as a high-risk, high-liquidity asset, is not immune to this dynamic. The initial wave of selling appears to be a direct result of this potential macro-economic shift. This broader financial uncertainty has led to increased caution among Bitcoin traders. Following the recent rally to new all-time highs, the market was arguably in an overbought condition and susceptible to a correction. The macro news provided a catalyst for this pullback. Technical analysis levels are now coming into focus for traders looking for potential support. While the immediate drop brought prices near $85,000, several analysts warn that if the sell-off intensifies, Bitcoin could retreat further to test deeper support zones. Some charts indicate that a more significant correction could see the price fall toward the $67,000 level. This area represents a key historical resistance-turned-support zone and a major psychological level for the market. It is crucial to view this movement within the larger context. Bitcoin has experienced a powerful upward trend throughout 2024. Periodic corrections are a normal and healthy part of any bull market, serving to shake out over-leveraged positions and establish stronger foundations for future advances. The current volatility is a reminder that Bitcoin remains influenced by global liquidity conditions, especially during periods of transition in major central bank policies. The focus for investors now shifts to how the market absorbs this selling pressure. Key factors to watch include whether the Bank of Japan follows through with any policy change and the overall strength of buying interest at lower price levels. The reaction around the mentioned support zones will be critical in determining whether this is a short-term correction or the beginning of a deeper, longer consolidation phase for Bitcoin as the year draws to a close.
