Crypto rout deepens as Bitcoin slides 28% from peak; yen surges on BoJ shift, stocks wobble into December
A sharp risk-off wave hit global markets as Bitcoin extended its decline to 28% from its all-time high and Ether flashed a bearish “death cross.” The yen rallied and Japanese bond yields spiked to a 17-year high on growing odds of a Bank of Japan move in December, while U.S. stock futures slipped at the start of a new month amid uncertainty over the next Fed chair.
Crypto volatility spikes as deleveraging gathers pace
Bitcoin and Ether fell another 5–6% in early trading, extending a two-day slide that has erased roughly 10% from major tokens and triggered an estimated $646 million in crypto liquidations. The cascade underscores fragile liquidity and crowded leverage after a powerful run-up earlier in the year.
Ether’s technical backdrop deteriorated as a widely watched death cross — where the 50-day moving average drops below the 200-day — reinforced bearish momentum signals. With funding rates cooling and options skew turning defensive, traders report a rush to reduce risk ahead of key macro catalysts.
Yen jumps as BoJ signals tightening path; JGB yields hit 17-year high
The yen strengthened broadly after Tokyo inflation printed hotter than expected and senior Bank of Japan officials hinted at a potential policy shift as soon as December. Japanese government bond yields climbed to a 17-year high, amplifying global rate volatility and pressuring carry trades.
The move adds a new layer of uncertainty for FX markets into year-end. A firmer yen and higher JGB yields narrow rate differentials and could sap momentum from dollar-yen bulls, particularly if U.S. yields stall near the psychologically important 4% area.
U.S. futures edge lower; Fed leadership watch takes center stage
Wall Street futures dipped after a rocky November, with traders wary of policy continuity as speculation grows around the next Federal Reserve chair. Any hawkish-leaning appointment or guidance on the Fed’s balance sheet could jolt Treasury yields, the dollar, and risk assets, including crypto.
Energy watch: Gunvor circles U.S. oil and gas assets
In commodities, trading house Gunvor is said to be evaluating U.S. oil and gas assets with an emphasis on natural gas — a move that would align with deepening North American M&A after recent multi-billion-dollar deals in the shale patch. Additional capital aimed at U.S. gas could influence regional price spreads and LNG-linked flows if executed at scale.
Market snapshot
- Bitcoin extends losses to about 28% from its record high; Ether’s death cross intensifies bearish momentum.
- Crypto liquidations top $646 million as leverage gets flushed; volatility and downside skew rise.
- Yen rallies as BoJ hints at a December move; JGB yields hit a 17-year high after hotter Tokyo CPI.
- U.S. stock futures soften into the new month; traders eye Fed chair pick and rate path signals.
- Gunvor reportedly explores U.S. oil and gas assets, with a focus on natural gas amid active shale M&A.
Why it matters for FX and macro
The combination of a stronger yen, higher Japanese yields, and Fed leadership uncertainty tightens global financial conditions at the margin. If U.S. yields firm and the BoJ normalizes policy, the dollar’s path could become more nuanced: USD strength versus high-beta FX may persist in risk-off phases, but a durable yen rebound would complicate carry trades. For crypto, thinner year-end liquidity and macro headline risk heighten the odds of overshoots on both sides.
What traders are watching next
- BoJ communication and December meeting cues; Tokyo inflation follow-through into national CPI.
- Fed chair announcement timing and any hints on balance-sheet runoff and neutral-rate views.
- Crypto positioning metrics — funding, open interest, options skew — for signs of capitulation or stabilization.
- Energy deal flow that could reshape U.S. gas supply dynamics and LNG export expectations.
FAQ
Why did Bitcoin drop 28% from its all-time high?
The decline reflects a combination of profit-taking after a strong rally, thin liquidity, and forced deleveraging. Rising macro uncertainty — including central-bank policy shifts and higher yields — has also dampened risk appetite.
What is a “death cross” in Ether and why does it matter?
A death cross occurs when the 50-day moving average falls below the 200-day moving average. It’s a bearish signal that can reinforce downside momentum as systematic traders and short-term funds adjust positioning.
How do BoJ signals and Tokyo inflation affect the yen?
Hotter inflation and hints of policy normalization raise the odds of a BoJ tightening move. That typically supports the yen by narrowing rate differentials with other economies and lifting Japanese bond yields.
Could a new Fed chair change the trajectory of U.S. yields and the dollar?
Yes. A chair perceived as more hawkish could push Treasury yields higher and support the dollar, while a dovish-leaning choice might ease yields and weigh on the greenback. Markets will also parse any guidance on the balance sheet and long-run neutral rate.
Are crypto losses spilling over into broader markets?
So far, the impact is most acute within digital assets, but sharp crypto moves can exacerbate risk-off sentiment, especially when accompanied by higher rate volatility and a stronger dollar.
Why would Gunvor’s interest in U.S. gas assets matter for prices?
If major traders expand U.S. gas exposure, it could influence regional supply-demand balances, infrastructure investment, and LNG-linked flows — all of which can shape price spreads and volatility.
What should traders monitor into December?
Watch BoJ communications, any Fed leadership announcements, U.S. yield moves around the 4% threshold, and crypto market microstructure data (funding rates, open interest, and options skew) for signs of stabilization or further stress. BPayNews will continue tracking these catalysts.
