Bitcoin’s weekend turned chaotic after a sharp, unexpected drop wiped more than $4,000 off its price in just a few hours, unleashing a wave of panic across the digital-asset market.
By the time the dust began to settle, roughly $140 billion had vanished from the global crypto market cap, dragging the entire sector back below the $3 trillion threshold.
The sell-off wasn’t born inside the crypto world—it was sparked thousands of miles away in Japan. A sudden surge in Japan’s 10-year government bond yield, which climbed to 1.85%—its highest level since 2008, jolted global traders. The spike fueled renewed expectations that the Bank of Japan could pull the trigger on a rare December interest-rate hike.
That possibility was enough to spook investors running popular yen carry trades, many of whom had borrowed cheaply in yen to pile into high-risk assets like Bitcoin. As bets began to unwind, crypto markets—already thin over the weekend—buckled under the pressure.
Billions in leveraged long positions were flushed out within hours, amplifying the plunge as forced liquidations tore through exchanges.
After the freefall, Bitcoin managed to steady itself near $85,800, though traders remained on edge, watching for signs of firmer support and bracing for more ripple effects from Japan’s shifting monetary winds.