Crypto Prices Fall on BoJ Tightening Fears, $650M Liquidated

Bitcoin and Ethereum led a sharp decline in cryptocurrency prices on Monday, December 16, as markets reacted to fears of tighter monetary policy from the Bank of Japan, triggering over $650 million in liquidations across digital assets.

The selloff intensified during Asian trading hours, with Bitcoin falling more than 4.5 percent to around $85,700 before a partial rebound to $86,500. Ethereum experienced even steeper losses, dropping nearly 9 percent in eight hours to $2,930, marking its most dramatic intraday move. The broader crypto market capitalization dipped 4.4 percent, reflecting heightened volatility amid thin liquidity. According to data from Coinglass, total liquidations reached $652 million to $670 million in the past 24 hours, predominantly affecting long positions that bet on rising prices. Ethereum accounted for $233.5 million in liquidated longs, surpassing Bitcoin's $184.8 million, while shorts saw smaller hits of about $205 million and $168.8 million, respectively.

Analysts attributed the downturn primarily to renewed concerns over the Bank of Japan's potential interest rate hike at its ongoing policy meeting. Such a move could unwind the yen carry trade, where...