TOKYO / LONDON (IT BOLTWISE) – The crypto market experienced a dramatic plunge as Bitcoin, Ethereum and XRP posted significant losses. The trigger was the Bank of Japan’s announcement that it would increase the likelihood of a rate hike in December, which led to a global sell-off. Liquidations rose rapidly as automated trading systems and technical volatility added pressure to markets.
Today’s daily deals at Amazon! ˗ˋˏ$ˎˊ˗
The crypto market is once again under significant pressure after Bitcoin, Ethereum and XRP suffered massive losses. The trigger for this dramatic drop was the Bank of Japan’s announcement that it would increase the probability of a rate hike in December to 76%. The news sent two-year bond yields in Japan soaring to 1.84%, the highest since 2008, and sparked panic in global markets.
The rate hike threatens the so-called yen carry trade, in which investors borrow cheap yen to invest in higher-yielding assets around the world. Rising borrowing costs are forcing traders to liquidate their positions, leading to a rapid outflow of capital from risky assets like cryptocurrencies. This development significantly weakened Bitcoin and other altcoins even before the trading day began in the US.
Bitcoin experienced one of the sharpest declines as many leveraged traders were caught off guard by the sudden downward move. The price fell below key support zones, triggering a wave of margin calls and stop-loss orders. Automated trading systems increased selling pressure by reducing positions and recalibrating risk models. Over $200 million in Bitcoin long positions were liquidated within hours.
Ethereum was also affected by the developments and recorded even larger losses in percentage terms than Bitcoin. The price fell to $2,821 as liquidation flows expanded to altcoins. Around $159 million in long Ethereum positions were liquidated within 24 hours. Market analysis shows that the decline is mainly due to liquidity shortages, not a specific issue with the Ethereum protocol.
XRP also failed to escape and fell amid the broader market correction. The coin failed to break through a crucial resistance area between $2.19 and $2.29, resulting in a bearish “supply pin bar” pattern that technical traders interpreted as a sell signal. Demand for XRP weakened and trading volume remained low, putting additional pressure on the price.
Liquidations reached over $637.57 million in volume in the last 24 hours, with long positions accounting for the majority at $567.96 million. This development shows how strongly traders were betting on rising prices. Liquidations rose from $15 million to $578 million in an eight-hour window, reflecting the rapid shift in market dynamics.
Order an Amazon credit card without an annual fee with a credit limit of 2,000 euros!
Bestseller No. 1 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 2 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 3 ᵃ⤻ᶻ “KI Gadgets”
Bestseller No. 4 ᵃ⤻ᶻ «KI Gadgets»
Bestseller No. 5 ᵃ⤻ᶻ “KI Gadgets”
Please send any additions and information to the editorial team by email to de-info[at]it-boltwise.de. Since we cannot rule out AI hallucinations, which rarely occur with AI-generated news and content, we ask you to contact us via email and inform us in the event of false statements or misinformation. Please don’t forget to include the article headline in the email: “Crypto market under pressure: Macroeconomic factors lead to massive losses”.
The post Macroeconomic factors lead to massive losses appeared first on Veritas News.
