The start of December brought significant volatility, marked by an abrupt Bitcoin drop in the Asian market that pushed the asset’s price below the psychological level of $86,000. This decline occurs despite some optimism in regional stock exchanges regarding an imminent interest rate cut in the United States. According to reports from data analytics platforms like Coinglass, selling pressure broke through several intraday support levels, creating a complex scenario for bullish investors who were expecting new highs.
The figures are striking, showing that nearly $608 million dollars were liquidated in crypto futures contracts in just a 24-hour period. Of this massive volume, long positions took the brunt of the hit, totaling losses exceeding $535 million dollars, while short sellers saw only about $73 million affected. Likewise, Bitcoin and Ethereum led this corrective move, with liquidations of $185 million and $154 million dollars respectively, which for many highly leveraged traders felt like a market trap designed to clear positioning before the annual close.
Is this pullback a simple correction or a trend change?
On the other hand, this financial event is intrinsically linked to global macroeconomic factors, such as the rise in Japanese bond yields to levels not seen since the year 2008. Analysts like Zerohedge suggest that Bitcoin’s correlation with declining risk assets, including the Nikkei index, acted as the main catalyst. Furthermore, the leading asset had shown clear signs of fatigue after hovering unsuccessfully near the $91,000 mark, which transformed routine profit-taking into a wave of forced selling due to stop triggers.
Nevertheless, investor focus remains fixed on Washington, where upcoming comments from Chair Jerome Powell are expected to offer clues on monetary policy. Currently, futures markets assign an 87% probability to a rate cut this month, so the Bitcoin drop in the Asian market could be a temporary adjustment. The reaction of cryptocurrencies will depend largely on this week’s economic data, as solid figures could determine whether the bullish trend continues into 2026 or if the market needs a deeper reset.
Finally, the sector faces decisive days loaded with reports on US manufacturing and consumer confidence that will be published shortly. This information will be vital to validate if the current pullback is simply a positioning shakeout or the beginning of a more extensive corrective phase following the annual rally. Traders must act with extreme caution, as volatility could persist while upcoming global financial maneuvers are defined and holiday season data is digested.
