Yen Carry Trade Collision: Bank of Japan’s Rate Shock Aims at Bitcoin | US Crypto News

Bitcoin’s derivatives market experienced an extreme turnaround today as a sudden drop in price coincided with mounting macroeconomic tensions, resulting in a staggering 11,588% liquidation imbalance that took the trading community by surprise, according to CoinGlass. 

The downturn began the moment Hassett stated that even 3% growth in the first and second quarters would be disappointing. BTC was trading around $90,500 before sliding down, revealing how crowded the long side had become before the macro hit.

The imbalance number shows how one-sided the wipeout was. For every $1 liquidated from shorts, more than $115 was lost from longs. This only happens when leverage is heavily stacked in one direction and confidence wanes suddenly. CoinGlass">

More than $20 million in BTC long liquidations occurred in minutes, while shorts barely moved. Ethereum and other major cryptocurrencies followed with softer hits, but Bitcoin dominated every time frame on the heatmap.

Fear, uncertainty and doubts

The deeper driver was the macro backdrop. Markets are facing rising economic uncertainty at the same time that a potential new Fed head is signaling rate cuts. Rate cuts are normally bullish, in common sense, which is why traders often try to front-run them. 

However, when the path to cuts is tied to uncertain data, shifting growth expectations and unclear demand strength, the bullish outlook is accompanied by anxiety rather than conviction. This makes leveraged players exit early, not because rate cuts are bad, but because the environment surrounding them is uncertain.

Morgan Stanley's prediction of a 25-basis-point cut in December only intensified the tension. With liquidity low and longs stacked, the market did not wait for confirmation. This imbalance occurred because positioning cleared out the moment uncertainty outweighed comfort, not because of a failure in Bitcoin’s price structure.

Michael Saylor, popular Bitcoin advocate and chairman of leading Bitcoin-focused investment firm Strategy, has expressed delight while issuing appraisals after meeting with Binance’s founder, Changpeng Zhao, for the first time ever.

The meeting, which happened in Dubai during the Binance Blockchain Week event, has made headlines in the crypto ecosystem, as it had brought together many high-profile personalities in the industry.

Saylor praises world's largest exchange 

Shortly after the conclusion of the event, Michael Saylor took to X, issuing a brief remark on his meeting with Binance’s CZ, with the tag “Great Bitcoin Exchange.”

Michael Saylor made the post, adding a photo featuring him alongside the Binance founder at Binance Blockchain Week. The post had immediately drawn the attention of the crypto community, with many users celebrating the symbolism behind the notable convergence of the crypto icons.

Notably, the meeting had earlier been publicly acknowledged by CZ himself shortly after Saylor delivered his speech at the event on December 4.

While both Saylor and CZ have been prominent figures within the cryptocurrency community for years, commentators have praised their meeting as a clear representation of the opposite ends of the crypto market dynamics. This is so because one is a renowned buyer of the leading cryptocurrency, while the other is publicly known for selling, describing their meeting as the “Great Exchange” Saylor was talking about.

Saylor describes Bitcoin's role in the evolving world economy 

During his presentation at the event hosted by Binance, Saylor emphasized the role of Bitcoin in the world economy, noting that it has only just begun.

While it is not a surprise that Saylor’s belief is firmly rooted in Bitcoin’s long-term prospect, he explained that Bitcoin is the foundation of economic markets. As such, leading tech giants like Google, Microsoft, and even the Navy’s spending power is no match for the Bitcoin trading power.

Furthermore, Saylor also gave a few highlights on Strategy’s ongoing Bitcoin strategy and has confirmed the firm’s resilience in continuing to accumulate Bitcoin regardless of the market conditions.

US attorneys representing the federal government have requested that a judge send Terraform Labs co-founder Do Kwon to prison for 12 years at his sentencing hearing next week.

In a Thursday filing in the US District Court for the Southern District of New York, prosecutors asked that a judge sentence Kwon “to a term of twelve years’ imprisonment and finalize the forfeiture of his criminal proceeds.”

The filing came about four months after the Terraform co-founder pleaded guilty to two counts of wire fraud and conspiracy to defraud.

“In just a few years, Kwon caused losses that eclipsed those caused by Samuel Bankman-Fried [...] Alexander Mashinsky [...] and Karl Sebastian Greenwood [....] combined [emphasis included in filing],” said the Thursday filing. “The Terraform market crash triggered a cascade of crises that swept through cryptocurrency markets and contributed to what has since become known as ‘Crypto Winter.’”

Crypto analyst CryptoInsight has indicated that the XRP price is on the verge of another crash, with a potential drop below the psychological $2 level. The analyst also revealed the level that the altcoin needs to reclaim to invalidate this bearish outlook. 

XRP Price Risks Crash To Another Low

In an X post, CryptoInsight suggested that the XRP price could crash to a new low. This came as the analyst noted that on the lower time frame, the altcoin has made a higher low after bouncing from range lows. However, it has yet to make a higher high, which provides a bearish outlook. 

The analyst further remarked that until the XRP price makes a higher high, there is likely to be more chop while questioning the possibility of another low revisit. He indicated that XRP will need to break the descending triangle and through the $2.30 level before a reversal can be on the cards. 

However, CryptoInsight is still bullish on the XRP price in the long term. He noted that the higher-time-frame structure is still well and truly intact. The analyst added that the altcoin is holding the yearly range lows as support, which is also the previous 7-year resistance. In line with this, he declared that it is inevitable that XRP records a new all-time high (ATH) in the near future based on liquidity alone. 

Meanwhile, the analyst remarked that he is uncertain whether the XRP price will wick out to the bottom first to regain momentum. Overall, he remains bullish on XRP. Crypto analyst CasiTrades had stated that XRP might need to record one last low before it reverses and rallies to new highs. She highlighted $1.80 and $1.64 as areas that XRP could bottom at. 

XRP Likely To Retest $2.04 With Two Likely Scenarios

In her latest X post, CasiTrades stated that the XRP price is likely heading to retest the macro .5 Fib at $2.04. She noted that this level has been the most important one in the entire correction. Based on this, she outlined two scenarios that could play out if the altcoin drops to that level. The analyst described the first scenario as the bullish new trend. 

Under this scenario, if $2.04 holds as support, the XRP price could break above the $2.41 resistance and push toward $2.65, confirming a new bullish wave structure is forming. CasiTrades remarked that this potential move would strongly suggest that the macro low is already in, with the altcoin eyeing new highs between $7 and $10. 

Meanwhile, the second scenario is a bearish .618 support test. If the XRP price fails to hold $2.04, CasiTrades predicts that it would likely head toward $1.64, completing the full macro .618 retracement before launching into the macro Wave 3. 

At the time of writing, the XRP price is trading at around $2.08, down over 4% in the last 24 hours, according to data from CoinMarketCap.

Cardano is entering December with some solid stats, according to CryptoRank, that do not usually get talked about in all the crypto market noise — but they tend to matter when trying to predict the future. Its long-term return pattern shows one of the best December setups among the major altcoins, with a strong average gain of about +56.9% and a positive +3.7% median. 

This unusual pairing points to both big upside bursts and a pretty reliable base case in the final month of the year. 

Compared to Ethereum, which had a decent +6.38% December average but a weaker +4.33% median, or Bitcoin, where the average is around +7.92% and the median barely hits +0.89%, ADA shines not just because of its size but also because it is consistent across very different market conditions. CryptoRank">

Even XRP, which has a big +64% average but a negative median, shows a much more binary distribution. Cardano is the one that blends both the big-swing years and the stable baseline in a way that statistically makes a constructive December more likely.

Cardano price chart reality

The price chart really drives the point home too. The Cardano price is sitting near the lower end of its 2025 range after a long compression cycle that erased the late-2024 spike and reset positioning. ADA usually does its best in the months after a market cools down, and December often marks the point where selling pressure slows down and speculation picks up again.

There is no guarantee that this will reverse the trend, but the setup is simple. If the historical rhythm repeats and the macro conditions do not get worse, Cardano could easily be one of December's under-the-radar high performers.

Nischal Shetty, co-founder of Shardeum, says the rise of spot Bitcoin exchange-traded funds (ETFs) has helped push Bitcoin deeper into the traditional financial system, giving institutions a regulated and familiar way to gain exposure.

He said the approvals have not only “validated” Bitcoin but also made it easier for major firms to participate without changing their existing custody setups. According to Shetty, this lowers internal friction and removes one of the biggest barriers to institutional adoption.

However, he stressed that ETFs are just one part of a much larger maturity process. Regulation, custody improvements, better liquidity and stronger institutional infrastructure also play roles. 

Falling Volatility Doesn’t Mean a Permanent Shift

Bitcoin recently hit new all-time highs, but the swings around those peaks have been smaller than in past cycles. 

In an interview with Coinpedia, he said, “It’s a meaningful trend, but not a complete structural shift yet. Lower volatility around price peaks suggests institutional flows are starting to balance speculative cycles.”

The smoother price movements point to a growing share of institutional flows, which tend to be less emotional than retail traders. Steady ETF buying has created more predictable demand, softening sudden spikes and crashes.

But he warned that this may not last forever. “Volatility can return when macro conditions change or when ETF flows slow down,” he said. For now, Shetty sees this as the start of a more mature market cycle, not a permanent shift in Bitcoin’s behaviour.

Bitcoin and Ethereum Outlook Through 2026

Looking ahead, Shetty expects Bitcoin and Ethereum to experience longer, more sustained trends instead of the sharp week-to-week moves that dominated earlier years. This depends on ETF inflows staying positive and global monetary conditions not tightening too quickly.

He said Bitcoin’s path will be shaped mainly by central bank policy and how institutions integrate it into their portfolios. Ethereum, by contrast, will depend more on real usage—whether activities like tokenization, DeFi, payments and developer growth continue shifting on-chain.

Shetty added that volatility is unlikely to disappear completely, but broader participation can help soften extreme moves. “Long-term sustainable growth comes from real usage, not just speculative momentum,” he said. “The same applies to both Bitcoin and Ethereum.”