## Cryptocurrency Suddenly Rebounds, Market Sentiment Turns Sour

The cryptocurrency market experienced a significant correction today, with most mainstream coins showing weakness over the past 24 hours. Bitcoin dropped $2,000 in just 35 minutes, erasing $40 billion in market capitalization, and panic quickly spread. This return of volatility led to over $132 million in long positions being forcibly liquidated within an hour.

## Mainstream Coins Under Pressure Across the Board

Bitcoin is currently trading at approximately $90,870, down 0.04% for the day, with a weekly decline of 1.82%. Despite increased market volatility, trading activity remains active, with a 24-hour trading volume of $73.635 billion.

Ethereum followed closely, currently priced at $3,120, up 0.48% over the past day. Other major coins are also facing downward pressure, including Binance Coin (BNB) at $903.10, Ripple (XRP) at $2.05, and Solana (SOL) at $140.15.

## Bank of Japan Decision Becomes Market Focus

The sharp sell-off appears to be closely related to market expectations regarding the Bank of Japan's upcoming interest rate decision, scheduled for December 19. The market generally anticipates a rate hike next week and further increases in 2026. Historically, rate hikes by the Bank of Japan tend to put pressure on global risk assets, and cryptocurrencies are no exception.

Industry insiders point out that market makers often use negative news such as the Bank of Japan's rate hikes as a cover for market manipulation. On October 10, when Trump tweeted about tariffs on China, the market plummeted, liquidating $19 billion in leveraged positions within 24 hours.

## Fed Support Signals Are Being Overlooked

What’s more noteworthy is that the Federal Reserve recently released some of the most supportive signals in recent years, hinting at three rate cuts in 2025, confirming that quantitative tightening has ended, and indicating that inflation trends are downward. Despite this positive backdrop, cryptocurrencies are under pressure, while stocks, gold, and silver continue to strengthen.

Analyst Ash Crypto believes that current price fluctuations are more driven by fear and uncertainty rather than fundamentals. This correction has frustrated retail traders, but large institutional players are quietly accumulating during the market downturn.

Many market observers expect that volatility in the cryptocurrency market will continue to rise ahead of the Bank of Japan's decision, which is expected to set the tone for the remaining months of this month.