Bitcoin drops to $88k due to concerns over Bank of Japan rate hike – MarketForces Africa
On Sunday, Bitcoin experienced a price drop to $88k due to concerns over the Bank of Japan potentially implementing an interest rate cut. The cryptocurrency market has seen a 1.57% decline over the past 24 hours, continuing a monthly decrease of 9.68%. Traders are cautious as they anticipate the impact of potential Bank of Japan (BOJ) rate hikes while Bitcoin remains below the $89k mark.
BTCUSD is trading negatively, reflecting a decrease in trading volume, according to data from CoinMarketCap.com. Bitcoin’s price has fallen by 2.33% within a 24-hour period, reaching $88,082, with a trading volume of 50.86 billion. Daily trading volume for Bitcoin has also decreased by 21.13%.
Bitcoin’s performance at the end of 2025 is influenced by the balance between nation-state accumulation and macroeconomic risks, as well as the challenges faced by its infrastructure. As of now, the cryptocurrency market capitalization has declined by 1.5% on Sunday, reaching $3.02 trillion, compared to its 7-day value of $3.08 trillion and its peak of $3.48 trillion over the past 200 days.
The Relative Strength Index (RSI) indicates an oversold market condition at 41.34, although there is no confirmation of a reversal in trend. The decline in the market capitalization of all crypto assets is attributed to concerns about macroeconomic factors, technical exhaustion, and the unwinding of derivatives positions.
With Bitcoin trading at $88.2k level on Sunday, it is facing resistance at $94k, despite increased accumulation by large holders earlier in the month. The realized profit/loss metric for holders within the 1-3 month timeframe has reached levels similar to those seen during the bear market in July 2022, indicating a sense of capitulation among investors.
The Bank of Japan is expected to raise interest rates to 0.75% on December 18-19, marking its highest level since 1995. Past rate hikes in March 2024 (-23% BTC), July 2024 (-26%), and January 2025 (-30%) led to significant selloffs in the crypto market as Japanese capital repatriation reduced global liquidity. Traders are wary of a similar scenario playing out this time, with analysts cautioning about the potential impact on Bitcoin’s price and market sentiment.
