Bitcoin faced difficulties in holding its ground above the $90,000 support level, amid expectations of hawkish policy shifts from the Bank of Japan. Historically, every rate hike by the BoJ since 2024 has resulted in a notable 20–30 percent decline in Bitcoin, prompting traders to adopt a more cautious strategy. In the last 24 hours, the cryptocurrency market saw a decrease of 1.01 per cent, resulting in a monthly decline of 4.83 per cent. Total market capitalization has decreased by over $130 billion, now standing at $2.98 trillion. A staggering 116,000 traders faced liquidation, resulting in losses surpassing $295 million, highlighting the dangers of high leverage and a fragile market sentiment.
As of the latest update, Bitcoin is priced at $89,713.87, reflecting a decrease of 0.46 percent, with a 24-hour trading volume reaching $45.18 billion. According to the reports, the price fluctuated between $87,634 and $90,302 throughout the session. Ethereum saw a slight uptick of 0.47 percent, trading at $3,122.95, with trading volumes reaching $18.53 billion, fluctuating between $3,034 and $3,148. Even with the current caution, institutional sentiment remains positive. “Major banks in Brazil and the U.S. are suggesting 1–3% portfolio allocations to Bitcoin, indicating increasing mainstream acceptance.” “While liquidity tightening could extend short-term pressure, long-term adoption trends, new regulatory clarity in the UK, and US approvals for crypto banking licenses continue to reinforce the structural strength,” said Riya Sehgal.
The recent downturn in Bitcoin stems from BTC’s inability to maintain the $92,000–$93,000 range, leading to profit-taking and a transition to short-term risk-off strategies. “Without any immediate bullish catalyst, sellers gradually took control as buyers remained cautious, resulting in a steady decline rather than a chaotic sell-off.” The possibility for upward movement is being constrained by ongoing options selling from long-term Bitcoin holders. “The brief consolidation near $90,000 acted as a bear flag, followed by continuation toward the $88,000 zone,” as stated. In the short term, maintaining the 88,000 level could trigger a relief bounce, whereas a drop below this threshold, according to analysts, might lead to a decline toward the 86,000–87,000 range. A clear reclaim above the $90,000–$91,000 range is crucial for stabilizing market sentiment.
Vikram Subburaj noted that Bitcoin has a significant support level at $86,000. “A clean break below that would likely open up the next downside pocket toward the low range, where prior demand has shown up.” On the upside, the market still requires a strong reclaim of $90,000–$92,000 to indicate that risk appetite is returning. “Investors should maintain light positions amid macro volatility, steer clear of leverage, and consider altcoins as tactical trades until BTC shows stability above $90,000 with improved volumes,” he added. On Monday, altcoins showed a mixed picture. Top gainers included Canton, Trust Wallet Token, TRON, Internet Computer, Lido DAO, Injective, Polygon, UNUS SED LEO, ether.fi, Bonk, Starknet, Optimism, Filecoin, Aave, Tether Gold, PAX Gold, Mantle, Ethereum, NEAR Protocol, Ethereum Classic, GateToken, and Aptos, with gains of up to 8 per cent, according to the reports. In a notable downturn, several cryptocurrencies experienced declines, with losses falling between 2–7 percent.