Bitcoin Drops Below $88,000 Amid Renewed Selling Pressure
Bitcoin experienced renewed downside volatility over the weekend, briefly falling to $87,600 — its lowest level in two weeks — before recovering above $89,000.
The sharp move occurred during thin Sunday trading, a pattern that has become increasingly common in recent weeks as macro uncertainty continues to weigh on risk assets.
The drop marked Bitcoin’s weakest level since early December, when it was rebounding from a dip toward $84,000.
Michael Saylor Teases Another Bitcoin Accumulation
As markets reacted to the sell-off, Michael Saylor, chairman of Strategy (formerly MicroStrategy), hinted that his company may soon be adding more Bitcoin to its balance sheet.
Saylor posted “Back to More Orange Dots” on X, alongside a familiar chart representing Strategy’s historical Bitcoin purchases — a signal the market has come to recognize as a precursor to new accumulation.
Strategy’s most recent purchase was 10,624 BTC on Dec. 12, its largest buy since late July, according to on-chain tracking data.
Strategy’s Bitcoin Position Remains Deep in Profit
Despite short-term volatility, Strategy’s Bitcoin holdings remain firmly in the green.
Current metrics show:
- Total BTC held: 660,624 BTC
- Estimated value: ~$58.5 billion
- Average cost: ~$74,696 per BTC
Even after Bitcoin’s dip below $88,000, the firm remains significantly above its average entry price — reinforcing its long-term conviction strategy.
Bank of Japan in Focus as Macro Fears Resurface
Some analysts believe the weekend selling pressure may be linked to expectations around the Bank of Japan (BoJ) and its upcoming interest rate decision.
Several market commentators pointed out that prior Japanese rate hikes coincided with notable Bitcoin drawdowns, driven by unwinding of global carry trades.
Japan remains one of the world’s largest holders of US debt, meaning changes in its monetary policy can ripple across global risk markets.
Prediction markets currently price a 98% probability that the BoJ will raise rates by 0.25%, increasing caution among macro traders.
Analysts Divided: Priced In or Still a Risk?
Opinions remain split on whether Japan’s move has already been priced into markets.
Some analysts argue that markets are forward-looking, reacting to expectations rather than events themselves. From this perspective, the recent dip may simply reflect pre-positioning.
Others believe rate-driven carry trade unwinds could still apply pressure to Bitcoin and other risk assets in the near term.
Justin d’Anethan, head of research at Arctic Digital, described the move toward $88,000 as psychologically damaging:
“It feels like a defeat… rate expectations in Japan are instilling fear of another carry trade unwind.”
Range-Bound Bitcoin Still the Base Case
Despite the volatility, many analysts maintain that Bitcoin remains structurally strong and likely to stay range-bound between $80,000 and $100,000 in the absence of a clear macro or on-chain catalyst.
Until new liquidity enters the market or a decisive policy shift occurs, traders appear content to wait — while long-term holders like Saylor continue accumulating during dips.
The Bigger Picture: Conviction vs Volatility
Bitcoin’s short-term price swings contrast sharply with the behavior of institutional accumulators.
For investors watching the space, the divergence is clear:
- Short-term traders react to macro headlines
- Long-term holders focus on structural scarcity and adoption
Saylor’s continued hints suggest that, for some of the largest players, volatility remains an opportunity — not a warning sign.
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