Crypto Market Declines Ahead of Important Macroeconomic Reports

The crypto market is under pressure as the total market value fell 4.12% to $2.93 trillion. The Fear & Greed Index dropped two points in the last 24 hours to 22/100. Most major coins are down, showing growing caution among investors before key economic data.

Losses Across the Market

The market declines affected most major coins significantly. Bitcoin fell to $85,335 and later rebounded to $86,315, recording a decline of almost 4% in one day and over 30% since October’s high. Other major coins were hit even harder.

• Hyperliquid: -9.2%.
• Avalanche: -8%.
• Ethereum: -7.2%.
• Sui: -6.7%.
• Bitcoin Cash: -6.4%.
• Dogecoin: -6%.
• XRP: -5.9%.
• Cardano: -5.6%.
• Solana: -4.7%.

BNB, Litecoin, Shiba Inu, and Hedera all decreased between 3% and 4%.

Macroeconomic Factors Behind the Drop

Investor caution is growing ahead of key U.S. economic reports and the Bank of Japan’s upcoming rate announcement, contributing to the recent market decline. On Tuesday, the U.S. will release non-farm payrolls, with only 55,000 new jobs expected in October, down from 110,000 in September. Slower job growth adds uncertainty and could affect consumer spending.

The Bureau of Labor Statistics will also report the latest inflation data on Thursday. This follows the Federal Reserve’s 0.25% rate cut last week and its suggestion that additional cuts could be possible in 2026. The Bank of Japan is expected to raise rates by 0.25% on Friday, its first hike in nearly a year. A stronger yen could discourage carry trades and lead investors to reduce positions in higher-risk assets.

In the past, Bitcoin fell 20 to 30% when the BoJ raised rates.

Bank of Japan is about to hike rates with 0.25% on December 19

Bitcoin dumped the last 3 times the BoJ hiked interest rates:

March 2024 → -27%
July 2024 → -30%
January 2025 → -30% pic.twitter.com/GNjHyUIV3d

— Quinten | 048.eth (@QuintenFrancois) December 15, 2025

Traders are likely expecting this pattern, which adds pressure to the market. Even expectations alone can trigger sell-offs across cryptocurrencies, stocks, and other risk assets.

The Impact of Liquidations

The decline has been further accelerated by forced liquidations in leveraged positions. Bitcoin’s fall below $90,000 activated automated selling, which set off a cascade of liquidations in the derivatives market. More than $200 million in long positions were closed in hours, and total crypto liquidations in the last 24 hours exceeded $600 million, with long positions representing $514 million.

This mechanical selling usually amplifies price swings, leading to sudden and steep drops. Options expiring and high leverage made the market even more volatile, showing how quickly it can react to economic signals and trader behavior.

What to Expect Next?

In the short term, the crypto market is likely to stay volatile, influenced by leveraged positions and past trends. Some coins may recover, but risk appetite remains fragile. The market’s direction in the next few days will depend on economic reports and central bank actions.