Bitcoin Plunges to $85K Amid Asian Stock Turmoil - Global Markets Reel

Bitcoin just got a brutal reality check—tumbling to $85,000 as Asian equities shudder and send shockwaves worldwide.

The Domino Effect

Forget decoupling. When traditional markets in Asia sneeze, crypto still catches a cold. The sell-off wasn't contained; it bled across asset classes, proving digital gold isn't yet a panic room.

A $85,000 Wake-Up Call

The drop to $85K isn't just a number—it's a gut punch for bulls who priced in perpetual sunshine. It exposes crypto's lingering sensitivity to macro tremors, no matter how decentralized the ledger claims to be.

Global Ripples, Local Panic

Nervous fingers hit sell buttons from Tokyo to New York. The 'correlation trade' is back with a vengeance, reminding everyone that in a liquidity crunch, even Satoshi's invention gets treated like just another risky asset—much to the dismay of crypto purists.

Finance's Ironic Punchline

Here's the cynical twist: the very institutional adoption that promised stability is now amplifying the volatility it was supposed to tame. The suits brought their leverage and their panic, turning a correction into a cascade. Some hedge, apparently.

So, is this the big crash? Or just a brutal buying opportunity? The charts are screaming, but the narrative is yours to write. One thing's clear—when Asia trembles, the whole financial world still listens.

Macro and technical pressures

AI-linked credit spreads and tech credit have been widening, suggesting investors are reassessing long-standing macro drivers. Rapid rises in Nvidia’s receivables and inventories, along with lengthening days-sales-outstanding, raise questions about whether AI capex growth reflects real demand or pulled-forward orders. 

Meanwhile, crypto ETFs continue to record net outflows. Many digital asset products trade below a 1 mNAV, reflecting broader risk aversion. Strategy’s bitcoin treasury approaches break-even, and its stock sits on MSCI’s delisting watchlist. Consequently, index-driven selling could impact on-chain liquidity.

On the technical side, Bitcoin is still striving for stability after weeks of sell-offs. According to CryptoRank data, following a brief attempt at recovery, Bitcoin has dropped back to about $86,600. Selling pressure dominated price action, with the middle Bollinger Band around $91,000 serving as resistance.

Volatility remains high, as the upper Bollinger Band currently rests at around $99,900 and the lower at around $82,300. The Bollinger Bands indicator gauges price volatility and plots upper and lower limits around an asset’s average, which is helpful for specifying potential highs and lows.

Trading activity has stayed steady, but few buyers are stepping in, showing the recent price rebound lacks strong support. The Relative Strength Index (RSI) is currently at 33, indicating borderline oversold conditions, while the recovery still lacks control from the bullish momentum. The RSI indicator shows how fast the price of an asset changes, showing signs of overbought or oversold conditions.

Market dynamics and speculative moves

Analyst Ash crypto pointed out how strange the recent drop was: “Today’s dump makes absolutely no sense. Bitcoin dumped -$5,000 in 3 hours. $210,000,000,000 wiped out. Nearly $700 million liquidated. No negative news. No FUD.”

Similarly, Shanaka Anslem Perera pointed to Japan’s bond market as a key driver: “Bitcoin did not crash. It was executed. The weapon: Japanese Government Bonds. The Yen Carry Trade unwound, triggering margin calls and liquidations.” 

BITCOIN DID NOT CRASH.

It was executed.

The weapon: Japanese Government Bonds.

On December 1, 2025, Japan’s 10-year yield hit 1.877 percent. The highest since June 2008. The 2-year touched 1 percent. A level not seen since before Lehman fell.

This triggered the unwinding of… pic.twitter.com/i9aWPhoIbm

Perera estimates the mechanical selling affected positions totaling trillions globally, turning Bitcoin’s correlation with equities into a Leveraged expression of global liquidity.

According to him, institutional activity shows a paradox. While prices fell, whales accumulated 375,000 BTC, and miners reduced selling from 23,000 BTC monthly to 3,672 BTC. The market now focuses on the upcoming Bank of Japan (BOJ) policy decision on December 18. If yields rise further, Bitcoin could test $75,000. If the BOJ pauses, a short squeeze might push BTC toward $100,000.

Bitcoin’s recent decline reflects broader economic shifts in Asia rather than crypto-specific factors. The Bank of Japan’s next moves will be important.

Also Read: Bitcoin Runs on Energy, Not Laws, Elon Musk Tells Nikhil Kamath