Japanese policies combined with geopolitical risks, BTC faces short-term downward pressure testing

The cryptocurrency market has experienced intense volatility over the past week. BTC, under the impact of multiple risk factors, has once again tested its support levels. At the beginning of the week, Bitcoin’s price rapidly fell from $95,000 to a low of $91,000, then stabilized temporarily around the $93,000 level. Although this correction was less severe than the crash on November 10, it similarly reflects a rapid shift in market sentiment. According to the latest data, the current BTC price is $89.94K, with a 24-hour low of $87.26K, and overall remains under pressure.

Trump Tariffs Trigger Safe-Haven Buying, Gold Hits New High

Over the weekend, Trump announced a 10% tariff increase on Denmark and seven European countries, immediately sparking concerns about escalating trade wars. Safe-haven sentiment quickly spread, pushing gold prices to a new high, breaking through $4,600 per ounce. The flow of safe-haven funds is clearly visible — investors are selling risk assets and shifting into safe-haven assets. Due to the US holiday on Monday, cryptocurrencies naturally became the primary target for sell-offs, and the rising demand for safe assets directly contributed to downward pressure on the crypto market.

Large-Scale Position Liquidations, Altcoins Suffer Sharp Declines

In this correction, the derivatives market has taken a heavy hit. Data shows over $860 million in positions were forcibly liquidated, with $780 million coming from long positions. Altcoins have fallen even more sharply, with declines far exceeding those of mainstream coins. This chain reaction has further intensified market panic selling, creating a vicious cycle.

Japan Rate Hike and House of Representatives Variables, Multiple Risk Factors This Week

From a technical perspective, BTC’s price has once again fallen below the short-term trendline, indicating that downside risks remain. More notably, this week is packed with geopolitical events, with Japanese factors being particularly critical. The Bank of Japan’s rate hike policies, the dissolution of Japan’s House of Representatives, and other variables are expected to cause volatility in global financial markets. As a risk asset, cryptocurrencies tend to be more sensitive to such policy changes.

Technical Downtrend, BTC May Test $91,000 Support Again

The daily chart shows that the price has fallen back below the short-term trendline, suggesting further downside potential. Considering multiple risk factors this week — Trump tariffs, Iran situation, Japan’s rate hike decision, and House of Representatives developments — the market is highly susceptible to panic. It is expected that the crypto market will continue consolidating at lower levels this week. There may be a rebound opportunity mid-week, but investors should remain cautious ahead of Friday’s Japanese interest rate announcement and the weekend safe-haven sentiment resurgence. BTC could potentially challenge the $91,000 support again, further dragging down the overall altcoin market performance.