A series of negative factors have followed one after another, and the wave of crypto sell-offs has returned!

A series of negative factors have followed one after another, and the wave of crypto sell-offs has returned!

Under the dual pressure of macroeconomic headwinds and negative industry news, the cryptocurrency market is facing a new wave of selling pressure.

On Monday, the cryptocurrency market suffered a sharp setback. Bitcoin once fell 6%, breaking below the $86,000 mark; Ethereum dropped more than 7%, hitting around $2,800. This round of sell-off swept almost the entire market, with other tokens such as Solana also recording a 7.8% drop, marking a decidedly “risk-off” tone at the start of December trading.

This decline reversed last week’s brief recovery. Previously, Bitcoin’s price had fallen by 16.7% in November, but last week stabilized and moved back above $90,000. However, the market’s foundation remains shaky. Shortly after reaching its all-time high of $126,251 in early October, approximately $1.9 billion worth of leveraged bets were liquidated, triggering several weeks of ongoing sell-offs.

After Monday’s latest selling pressure, traders are preparing for the possibility of an even larger drop. FalconX’s Asia-Pacific Head of Derivatives Trading, Sean McNulty, said: “There is little investor interest in buying bitcoin ETFs, and the absence of dip buyers is the biggest concern. We expect structural headwinds to persist throughout this month.” He pointed out that $80,000 is the next key support level to watch for bitcoin.

Escalating Macro Headwinds: A Turning Point for Global Liquidity

The primary shadow hanging over the market comes from the macroeconomic level, especially expectations that global liquidity may tighten. Bank of Japan Governor Kazuo Ueda has sent his clearest signal yet of a potential rate hike this month, spurring Japan’s two-year government bond yields to break above 1% for the first time since 2008.

According to analysis from StockMarket.News, this implies the era of ultra-cheap money may be ending, and as this macro backdrop shifts, global risk assets will be repriced, with high-beta liquidity assets like bitcoin bearing the brunt of the impact.

At the same time, the market is closely watching economic developments in the United States. Key economic data to be released this week may provide important clues for the Federal Reserve’s interest rate path through 2026. U.S. President Trump said last Sunday that he has chosen the next Federal Reserve Chair and explicitly expects them to implement rate cuts. These developments together heighten uncertainty over the global interest rate outlook.

Relentless Negative Industry News, Damaged Market Confidence

In addition to macro pressure, a series of negative news from within the crypto industry is also surfacing, further eroding investor confidence.

Investors are digesting remarks from Phong Le, CEO of enterprise software and bitcoin whale company Strategy Inc. On a podcast last Friday, he stated that if the company’s mNAV ratio (enterprise value to bitcoin holdings) falls below zero, the company may sell bitcoin to pay dividends, although he added this would be a last resort. According to their official website, the company, which holds $5.6 billion worth of bitcoin, has seen its mNAV ratio fall to 1.19.

Additionally, the world’s largest stablecoin USDT is facing new scrutiny. S&P Global Ratings last week downgraded its stability assessment of USDT to the lowest rating and warned that a decline in bitcoin’s value could lead to insufficient collateral for the token.

Jeff Ko, Chief Analyst at CoinEx, said that “a series of bearish developments over the weekend” have brought renewed pressure to the cryptocurrency market.

Leverage Liquidation Amplifies Decline, Bitcoin’s “Macro Asset” Nature Highlighted

The intensity of this downturn is closely related to the market’s internal leverage structure. According to analysis from StockMarket.News, macro-driven initial declines are enough to break some short-term technical supports and trigger stop-losses, thereby starting the liquidation of crowded perpetual contract long positions. When exchanges start forcibly liquidating hundreds of millions of dollars in leveraged longs during illiquid overnight hours, it triggers “straight-line declines,” with each liquidation destroying buying demand and dragging the next wave of margin-stressed traders into the trap.

More notably, bitcoin’s performance in this episode resembles a macro asset highly sensitive to rate expectations and global liquidity, rather than an independent “digital gold” immune to external systemic influences. Analysts believe that as long as the mainstream narrative remains about potentially rising yields and more attractive returns on safe assets, bitcoin will face headwinds and continue to be traded as a high-risk asset.

Risk Disclosure and DisclaimerThe market involves risk, and investment should be cautious. This article does not constitute personal investment advice, nor does it consider the unique investment goals, financial situation, or needs of individual users. Users should assess whether any opinions, views, or conclusions in this article suit their specific circumstances. Any investment made accordingly is at your own risk.