Crypto Crash: Why Your Wallet is Crying 😭

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Bitcoin and Ethereum are having a meltdown, probably because they’re not getting enough attention from their exes. 🐍🚀 Traders are hitting pause like they’re at a family dinner and someone mentioned taxes. 🧠

  • The crypto market is going down ahead of key macro data from the US – because nothing says “excitement” like waiting for numbers that might make you cry. 🧮😭
  • It also dropped ahead of the Bank of Japan interest rate decision. Because who doesn’t want to watch a global financial soap opera? 🇯🇵💸
  • Traders continued to delever, with futures open interest falling by nearly 4% – because nothing says “I’m confident” like shrinking your bets. 🛑

Bitcoin (BTC) dropped to $86,980, down by nearly 9% from its highest point this month. Like, “Wow, I’m not even close to being done with this drama.” 📉 Similarly, Ethereum (ETH) token dropped to the critical support level at $3,000, much lower than last week’s high of $3,468. Because nothing says “I’m resilient” like a 13% dip. 🧠

Crypto market dips ahead of key macro data

Investors are awaiting key U.S. macroeconomic data. The Bureau of Labor Statistics is set to publish the latest non-farm payroll data on Tuesday. Because who doesn’t want to see if the economy is thriving or just pretending? 🧮

Economists polled by Reuters expect the upcoming report to show the labor market was sluggish in October, as companies remained wary due to tariffs. The average estimate is that the economy added 55k jobs, down from 110,000 in the previous month. Because nothing says “growth” like cutting half your workforce. 🚩

The Bureau of Labor Statistics will then release the latest consumer inflation report on Thursday. These numbers come a week after the Federal Reserve slashed interest rates by 0.25% and hinted of one more cut in 2026. Because who needs stability when you can have a rollercoaster? 🎢

BoJ interest rate decision ahead

Investors are also waiting for the upcoming Bank of Japan interest rate decision on Friday. Because nothing says “thrill” like a central bank’s decision to play financial chess. 🏦♟️

Economists and traders expect the bank to raise rates by 0.25% for the first time in over 11 months, as inflation remains above 2%. Because who doesn’t want to see prices go up? 📈

Traders are wary of what happens when the BoJ hikes rates while the Fed is cutting. The reduced spread between the two countries often leads to the winding down of the popular carry trade. Because nothing says “chaos” like conflicting monetary policies. 🌍💥

Bitcoin and most altcoins have historically dropped whenever the BoJ hikes interest rates. Because they’re not fans of surprises. 🎯

Bitcoin and Ethereum have formed a bearish flag pattern

Technical factors also explain why the crypto market crash is occurring. As we wrote in our coverage of MSTR, Bitcoin has formed a giant bearish flag pattern on the daily chart. It also remains below the Supertrend indicator, pointing to further downside. Because the market’s clearly not a fan of optimism. 🚩

Ethereum price has also formed this pattern. The chart below shows it is attempting to move below the lower boundary of the flag, which could push it to the November low of $2,622. The crypto market normally drops when Bitcoin and Ethereum are sending bearish signals. Because they’re the ultimate mood killers. 📉

Deleveraging continues as futures open interest drop

Meanwhile, futures data shows that investors have continued to reduce their leverage in the crypto market. Because nothing says “cautious” like cutting your bets in half. 🛑

Data compiled by CoinGlass show that futures open interest has been in free fall over the past few months. It dropped by 3.55% on Monday to $129 billion, down from the year-to-date high of over $255 billion. Crypto prices often decline when leverage in the industry declines. Because the market’s clearly not a fan of confidence. 💸

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2025-12-15 21:01