Bitcoin traded below $89,000 on December 14, 2025, erasing gains from the Federal Reserve's recent rate cut as markets braced for the Bank of Japan's policy meeting. Traders cited concerns over a potential yen carry trade unwind and upcoming U.S. economic data. Ether showed weekly strength, while most altcoins declined.
Bitcoin slipped below $89,000 in low-liquidity Sunday trading on December 14, 2025, down approximately 0.9% over the preceding 24 hours to around $88,514 at one point and $89,600 by 12:40 p.m. UTC. The cryptocurrency had opened the week above $90,000 and briefly surged past $94,000 following the Federal Reserve's 25-basis-point rate cut on December 9, which lowered the benchmark to between 3.50% and 3.75%. However, the momentum faded quickly, with prices dropping below $90,000 within two days and a short rally to $93,000 on December 12 also failing, leaving Bitcoin in negative territory for the week.
Ether traded near $3,104, down on the day but up more than 2% over the past seven days, outperforming Bitcoin weekly. The broader market remained subdued, with the CoinDesk 20 Index dropping almost 1% and total cryptocurrency market capitalization at nearly $3.15 trillion, down 0.8% in 24 hours amid $89 billion in trading volumes. Bitcoin dominance hovered near 57%. Major altcoins like Solana, XRP, Dogecoin, and Cardano fell, with many showing double-digit losses over the past month; XRP slid more than 3% weekly to below $2, losing its fourth-place ranking to BNB, while TRX, DOGE, and ADA declined 3% to 6%. Exceptions included Monero, up nearly 10%, and Zcash, up more than 20%.
Markets paused ahead of a busy macroeconomic calendar. In the U.S., key releases include November inflation data, employment indicators like the unemployment rate and ADP data, December flash PMI readings, and speeches from Federal Reserve Governors Stephen Miran and Christopher J. Waller. The Bank of Japan meets on December 19, with a 98% probability of a rate hike—sources vary on the size, with expectations of a move to 0.75%—to address inflation above its 2% target for over three years. Such a hike could unwind yen-funded carry trades, reducing global liquidity and prompting risk-off flows into assets like cryptocurrencies. Historical precedent shows Bitcoin dropping double digits on prior BOJ hikes.
Crypto analyst Ali Martinez noted on X that $86,000 remains a critical support level, warning of a deeper pullback if it fails. Technical indicators signal bearish pressure: Bitcoin has formed a death cross on the daily chart and a bearish flag pattern, trading below the Ichimoku cloud and Supertrend, with potential downside to the November low of $80,000 or further to $74,500.
