:
Summary
The cryptocurrency market has fallen by 3.61% over the past 24 hours, continuing a monthly decline of 9.6%. Today's drop is linked to overall investor caution in traditional markets and widespread liquidations using leverage.
Leveraged position closures – BTC liquidations amounting to $174 million (+68% over 24 hours ) amid rising derivatives trading volumes.
Impact of macroeconomic uncertainty – correlation with Nasdaq futures reached 0.89, as traders prepare for a rate hike by the Bank of Japan.
Regulatory concerns – warnings from SEC head have heightened fears of increased crypto regulation.
Detailed Analysis
1. Derivatives Market Crisis (negative factor)
Overview:
Cryptocurrency derivatives trading volume over the past day reached $293 trillion (+64%), with funding rates for perpetual contracts falling by 55%, indicating widespread closing of long leveraged positions. BTC liquidations totaled $174 million (+68%), with 91% of these from long positions.
What it means:
The market failed to sustain the derivatives volume growth of 29% last week, and excessive leverage (open interest increased by 14%) triggered a chain reaction of sell-offs after breaking key support levels.
Points to watch:
The $85 000 level for BTC — a break below could lead to new liquidations exceeding $200 million according to CoinMarketCap derivatives data.
2. Macroeconomic Fluctuations (mixed effect)
Overview:
The correlation of cryptocurrencies with the Nasdaq-100 index over the past 24 hours reached 0.89 (CMC data) — the highest since October 2025. Traders reduced risks ahead of the Bank of Japan’s rate hike by 25 basis points on December 19, which could influence strategies involving the Japanese yen.
What it means:
As US markets closed, cryptocurrencies became a kind of liquidity indicator. Bitcoin address activity decreased to 660,000 — the lowest in 12 months, indicating a decline in organic demand amid macroeconomic uncertainty.
3. Structural Problems of Altcoins (negative factor)
Overview:
Midnight’s NIGHT token lost 12% due to mass sell-offs after the airdrop, while SUI and CAKE fell 7-9% due to ecosystem issues, such as the aftermath of the DEX Cetus hack.
What it means:
The market sees no drivers for shifting investments into altcoins — Bitcoin’s dominance increased to 58.44%, and the Altcoin Season index remains at 22 out of 100, indicating altcoin weakness.
Summary
Today’s decline results from a combination of excessive leverage, macroeconomic uncertainty, and altcoin fatigue. The fear and greed index is at 21 (extreme fear), and the derivatives market signals high volatility. It is important to monitor whether BTC can hold the 200-day moving average ($84 000). The Bank of Japan’s rate decision could trigger short-term growth or, conversely, deepen sell-offs.$BTC $ETH
The cryptocurrency market has fallen by 3.61% over the past 24 hours, continuing a monthly decline of 9.6%. Today's drop is linked to overall investor caution in traditional markets and widespread liquidations using leverage.
Leveraged position closures – BTC liquidations amounting to $174 million (+68% over 24 hours ) amid rising derivatives trading volumes.
Impact of macroeconomic uncertainty – correlation with Nasdaq futures reached 0.89, as traders prepare for a rate hike by the Bank of Japan.
Regulatory concerns – warnings from SEC head have heightened fears of increased crypto regulation.
Detailed Analysis
1. Derivatives Market Crisis (negative factor)
Overview:
Cryptocurrency derivatives trading volume over the past day reached $293 trillion (+64%), with funding rates for perpetual contracts falling by 55%, indicating widespread closing of long leveraged positions. BTC liquidations totaled $174 million (+68%), with 91% of these from long positions.
What it means:
The market failed to sustain the derivatives volume growth of 29% last week, and excessive leverage (open interest increased by 14%) triggered a chain reaction of sell-offs after breaking key support levels.
Points to watch:
The $85 000 level for BTC — a break below could lead to new liquidations exceeding $200 million according to CoinMarketCap derivatives data.
2. Macroeconomic Fluctuations (mixed effect)
Overview:
The correlation of cryptocurrencies with the Nasdaq-100 index over the past 24 hours reached 0.89 (CMC data) — the highest since October 2025. Traders reduced risks ahead of the Bank of Japan’s rate hike by 25 basis points on December 19, which could influence strategies involving the Japanese yen.
What it means:
As US markets closed, cryptocurrencies became a kind of liquidity indicator. Bitcoin address activity decreased to 660,000 — the lowest in 12 months, indicating a decline in organic demand amid macroeconomic uncertainty.
3. Structural Problems of Altcoins (negative factor)
Overview:
Midnight’s NIGHT token lost 12% due to mass sell-offs after the airdrop, while SUI and CAKE fell 7-9% due to ecosystem issues, such as the aftermath of the DEX Cetus hack.
What it means:
The market sees no drivers for shifting investments into altcoins — Bitcoin’s dominance increased to 58.44%, and the Altcoin Season index remains at 22 out of 100, indicating altcoin weakness.
Summary
Today’s decline results from a combination of excessive leverage, macroeconomic uncertainty, and altcoin fatigue. The fear and greed index is at 21 (extreme fear), and the derivatives market signals high volatility. It is important to monitor whether BTC can hold the 200-day moving average ($84 000). The Bank of Japan’s rate decision could trigger short-term growth or, conversely, deepen sell-offs.$BTC $ETH