$300M wiped out – Could BOJ rate hike fears spark a crypto crash?

ambcryptoPublicado em 2025-12-13Última atualização em 2025-12-13

Resumo

Investors are closely watching the upcoming Bank of Japan (BOJ) meeting amid fears of a potential rate hike, which has rattled global markets. The crypto market cap dropped 2.4%, with Bitcoin falling below $90k, and nearly $300 million in leveraged positions were liquidated—87% from long trades. The sell-off also impacted U.S. equities, with the S&P500 down 7%. The BOJ rate hike could increase borrowing costs, reducing the flow of cheap yen used to fund global investments, including crypto. With fading FOMO, weakening key support levels, and growing long liquidity clusters, the market faces increased risk of a sharp downturn similar to October's crash.

Investors are closely watching the upcoming week.

On the charts, the Crypto Total Market cap dropped 2.4%, with Bitcoin [BTC] slipping about $2k and losing the $90k handle.

The move wasn’t isolated to crypto either. U.S. equities sold off as well, dragging the S&P500 down 7% at press time.

Notably, the fallout sparked a leverage flush as traders unwound positions.

Liquidation data shows roughly $300 million wiped out, with close to 87% coming from longs that were positioned for a bounce after BTC’s nearly two-week consolidation above $90k, adding extra downside pressure.

On the sentiment side, crypto slipped deeper into the “fear” zone, reflecting a clear shift toward risk-off behavior. With that backdrop, could the upcoming BOJ meeting be the trigger for another October-style crash?

BOJ policy shock puts crypto market on edge

The BOJ news shook more than just the crypto market.

Following the development, Japanese yields rose 2.9%, approaching all‐time highs. This indicates investors now require higher returns to hold Japan’s massive debt, which already equals 200% of total GDP.

Meanwhile, the Yen Index (JXY) slipped 0.2%, failing to break $64, keeping carry trades under pressure. Overall, the expected rate hike has rattled both domestic and global market sentiment, making it one to watch closely.

But how does this actually hit the crypto market?

The BOJ has long provided cheap yen for traders to fund investments globally. In this context, a rate hike would naturally increase borrowing costs, forcing traders to pull capital out of U.S. markets.

However, the crypto market could feel the impact even more.

FOMO is fading, key support is under pressure, and long liquidity is building around critical zones. In turn, Bitcoin could soon get drawn into these clusters, creating conditions for another October-style crash.


Final Thoughts

  • The upcoming BOJ rate hike rattled global markets: Japanese yields surged, and risk appetite across equities and crypto fell sharply.
  • In crypto, FOMO is fading, key BTC support is under pressure, and growing long liquidity clusters could trigger another sharp downside move.

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