Bitcoin Price Slides To $85k: How Low Can BTC Go In December?

Bitcoin opened the week in the red as fears of a Bank of Japan rate hike triggered a yen carry trade unwind, potentially risking a drop in BTC price to $67,000.

Bitcoin (BTC) experienced a sharp pullback in early Asian trading on Monday, dropping to $85,500 amid increasing expectations of a December rate hike by the Bank of Japan (BOJ).

Bitcoin dropped 5% to almost $85,000 in a marketwide correction, liquidating $656 million in longs.

Mounting expectations for a BOJ rate hike at its Dec. 18-19 meeting weighed on the BTC price.

Bitcoin’s bear flag projects a potential drop to $67,700.

BTC price fell as low as $85,616 on Monday, down 5.5% in the past 24 hours, amid a broader market retreat.

This extended the drawdown from the Oct. 6 all-time high of $126,000 to 32% and was accompanied by massive liquidations across the derivatives market.

Related: Fed rate-cut bets surge: Can Bitcoin finally break $91K to go higher?

More than $564.3 million in long positions was liquidated, with Bitcoin accounting for $188.5 million of that. Ether (ETH) followed with $139.6 million in long liquidations.

Across the board, a total of $641 million was wiped out of the market in short and long positions, as shown in the figure below.

Source: CoinTelegraph