Bitcoin (BTC) price slipping back to $90,000 caught attention across the crypto market and quickly set a cautious tone. The move was not dramatic by historical standards, yet it arrived fast enough to shake confidence and pull several major tokens lower alongside Bitcoin. Many readers want a simple answer to the same question circulating everywhere right now. Why is the crypto market down?
The story behind this pullback blends short-term price action, liquidation pressure, and growing sensitivity to global macro signals.
Bitcoin price hovered comfortably above recent support levels before the sudden dip. Momentum shifted when selling pressure accelerated over a short window, dragging price back toward $90,000. That level matters psychologically because it had acted as a reference point during earlier consolidation.
Bull Theory noted how quickly conditions changed. Bull Theory pointed to a sharp intraday drop that erased about $2,000 from BTC price in roughly 35 minutes. Market capitalization fell by around $40 billion during that stretch, while liquidations climbed to $132 million within an hour. Such fast moves often amplify fear even when the broader trend has not fully broken.
BREAKING: The 10am manipulation is back.
— Bull Theory (@BullTheoryio) December 12, 2025
Bitcoin dropped $2,000 in 35 minutes and wiped out $40 billion from its market cap.
$132 million worth of longs have been liquidated in the past 60 minutes.
This is getting ridiculous. https://t.co/0DRTFfL08r pic.twitter.com/RByT4CWF65
Bitcoin price slipping that quickly tends to ripple outward. Altcoins often follow Bitcoin’s direction during moments of uncertainty, which explains why the wider crypto market turned red even without project-specific news.
What you'll learn 👉
Liquidations and Leverage Pressure Deepen the Short-Term Pullback
Leverage plays a quiet role until volatility spikes. Once Bitcoin price started moving lower, leveraged long positions faced pressure. Forced liquidations then added extra sell orders into an already fragile market.
Bull Theory emphasized how this cycle can feed on itself. Liquidations do not reflect long-term conviction shifts, yet they still push price lower in the short run. Bitcoin reacting to leverage unwinds can feel more dramatic than the underlying fundamentals suggest.
That dynamic helps explain why the crypto market felt heavy even though the dip itself stayed relatively contained near $90,000.
Bank of Japan Rate Expectations Add to Bitcoin Price Pressure
Macro concerns also entered the conversation as traders reassessed global interest rate paths. Ash Crypto connected the timing of the dip to expectations around Japan’s central bank.
🚨THE REASON BEHIND TODAY'S DUMP.
— Ash Crypto (@AshCrypto) December 12, 2025
The Bank of Japan is set to hike rates next week on Dec 19th.
It's also expected that the BOJ will do more rate hikes in 2026.
Last time Japan raised rates, Bitcoin and crypto market dumped really hard. So the market is now already pricing in… pic.twitter.com/ubYDTFPSQK
Ash Crypto explained that the Bank of Japan is set to hike rates on Dec 19, with further hikes expected in 2026. Previous rate increases from Japan coincided with sharp pullbacks across Bitcoin and the broader crypto market. Bitcoin often reacts to shifts in global liquidity expectations, especially when those shifts involve major economies.
Markets tend to price in anticipated news before it happens. Fear of tighter conditions ahead can reduce risk appetite, even if the actual decision has not yet occurred. That backdrop helps clarify why Bitcoin price weakness appeared alongside renewed focus on central bank policy.
Bitcoin Price Movements Continue to Set the Tone for Crypto Markets
Bitcoin price remains the anchor for crypto sentiment. When BTC pulls back, confidence across the market tends to soften, regardless of individual project performance. BTC price at $90,000 still reflects strength compared to earlier cycles, yet short-term moves matter for psychology.
This episode shows how quickly narratives can shift. A modest dip becomes a talking point once leverage, liquidation data, and macro uncertainty line up at the same time.
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The Bitcoin price staying near $90,000 keeps the bigger picture intact, though near-term caution is understandable. Watching how BTC behaves around this level may offer clues about whether the market stabilizes or continues to test lower ground.
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