Crypto Hit by Global Macro Jitters: Panic Sell or Buy the Dip?
The cryptocurrency market traded cautiously on Tuesday, following a sharp selloff at the start of the month. Bitcoin (BTC) briefly plunged toward the $84,000–85,000 area, triggering nearly US$1 billion in leveraged liquidations and underscoring how fragile sentiment is right now. Trading around $86,000–87,000 at the time of writing, Bitcoin has only managed a modest rebound after a 5–6% drop in the previous session, signaling a shaky consolidation phase with volatility still running high.
Selling pressure in crypto is being driven not only by technical factors, but also by global macro headwinds. Massive selling in the global bond market, speculation about a potential rate hike from the Bank of Japan, and uncertainty over the Federal Reserve’s next move have all pushed investors to cut exposure to risk assets, including cryptocurrencies. At the same time, markets are digesting a wave of regulatory and institutional headlines—from new access to crypto ETF products to mixed views from major asset managers on Bitcoin exposure. Together, these forces are reinforcing “risk-off” behavior: many traders are choosing to wait for clearer US economic data and more explicit signals from central banks before turning aggressive again in the crypto space.
Beyond Bitcoin, altcoin performance has been mixed. Ethereum is hovering near $2,800 under persistent selling pressure, while XRP and several other large-cap coins continue their early-December correction. There are, however, pockets of resilience: some networks such as Aptos have recorded the largest stablecoin inflows over the past 24 hours, even surpassing Ethereum and BNB Chain, hinting at a rotation of capital into specific ecosystems despite broader market stress. On the other side, analysts like Tom Lee still view the recent pullback as a medium-term buying opportunity, with projections that Bitcoin could revisit the $100,000 region under a Fed rate-cut scenario and continued institutional adoption.
Fundamentally, the market appears to be undergoing a “crypto reset”: excess leverage is being flushed out, participants are repricing assets to reflect shifting interest-rate expectations and global liquidity, while long-term narratives—such as institutional participation, network upgrades, and ongoing DeFi/Web3 innovation—continue in the background. As long as macro uncertainty, particularly around Fed policy and bond yields, remains elevated, crypto prices are likely to stay volatile, with Bitcoin acting as the key barometer for whether this phase turns into a deeper correction or the launchpad for the next major rebound.
Source: Newsmaker.id
