Bitcoin Falls Below $86,000 as $594M in Liquidations Hit Market Amid BOJ Rate Decision and Fed Chair Speculation

Bitcoin fell below $86,000 on Dec. 16, dropping more than 3% in 24 hours, while crypto liquidations reached $594 million—including $497 million in long positions affecting 178,874 traders—BlockBeats reports. The Bank of Japan is set to announce its rate decision on Dec. 19, with markets pricing in a 25 bp hike; macro analysts including AndrewBTC warn Bitcoin could retreat toward $70,000 if the BOJ raises rates, citing prior 2024 and early 2025 hikes that coincided with Bitcoin declines of 23%, 26% and 31%. Polymarket data show former Federal Reserve governor Kevin Warsh's odds of being nominated by Donald Trump as the next Fed chair rose from 7% to 48%, overtaking Kevin Hasset, whose odds fell from a peak of 85% to 42%. Wintermute noted risk assets are "digesting macro uncertainty" rather than entering a sustained risk-off phase, while De Maere cited last week's Fed meeting—where rates were cut 25 bp but guidance turned cautious with only one rate cut projected for 2026—as a key pressure point given the gap with market pricing for nearly three cuts next year.