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Bitcoin Holds Near $90,000 as BoJ Hike Odds Rise and Carry-Trade Risks Loom

Traders are paring leverage ahead of Japan’s Dec. 19 decision, with options expiries lifting near-term volatility.

Overview

  • Japan’s central bank is expected to raise rates by 25 basis points to about 0.75% on Dec. 19, a three-decade high that has historically pressured Bitcoin via a stronger yen and carry-trade unwind.
  • Bitcoin is trading around $90,000 and remains range-bound, with repeated failures to clear the $96,000–$100,000 area after recent macro-driven pullbacks.
  • On-chain and derivatives metrics point to pre-event de-risking, including rising exchange inflows and declining funding rates as investors reduce spot exposure and leverage.
  • Analysts highlight resistance near $99,000 and immediate support around $76,000, while a low-liquidity distribution gap between $74,000 and $80,000 could attract price if supports give way.
  • Quarterly options expiring Dec. 19 are concentrating near-term risks, though some observers argue the impact of a BoJ hike may be tempered by net long yen positioning and earlier yield moves.