Markets Slip While Bitcoin Stabilizes Near $86K Amid Rising Pressure in Japan

Bitcoin steadied around $86,000 in early Asian trading on Tuesday, even as a sharp downturn across digital assets and a global bond selloff kept investors on edge and limited gains in regional equities.

The world’s largest cryptocurrency, often viewed as a barometer for risk appetite, remains under pressure after sliding more than 5% on Monday. It briefly dipped below $85,000 before recovering to about $86,400 in Asia, still nearly 30% below its October peak.

Liquidations accelerated the downturn. Over the past 24 hours, Bitcoin accounted for the largest share of forced sales at roughly $252 million, followed by Ethereum at about $111 million, according to CoinGlass. Other major tokens, including SOL and ZEC, saw smaller wipeouts.

Despite the turbulence, Asian equities attempted to stabilize. The MSCI Asia-Pacific Index (excluding Japan) rose around 0.6%, while Tokyo’s Nikkei 225 clawed back 0.5% after a steep drop in the previous session.

The caution stems from a weeklong rout in Japanese government bonds, which intensified after Bank of Japan Governor Kazuo Ueda signaled that an interest-rate hike could come as soon as this month. Traders are increasingly betting on the BOJ pivoting away from its ultra-loose policy stance, a shift that could have global ripple effects.

Ten-year Japanese yields climbed another 1.5 basis points on Tuesday to roughly 1.88%, the highest level in 17 years, ahead of a key bond auction. The sharp move follows a 6-basis-point jump on Monday, which also pushed U.S. Treasury yields higher, with the 10-year reaching about 4.08%.

Credit markets were also unsettled by developments in China. Property developer China Vanke requested a one-year extension to repay a local bond, highlighting ongoing liquidity strains across the country’s embattled real estate sector.

In the U.S., futures on the S&P 500 were little changed after the benchmark fell 0.5% on Monday, while the Nasdaq 100 slipped 0.4%.

Fresh economic data added to the mixed signals. The Institute for Supply Management’s gauge of U.S. manufacturing showed contraction for the ninth straight month in November, dipping from 48.7 to 48.2. New orders, employment, and backlogs all weakened further.

The softer data reinforced expectations that the Federal Reserve may begin easing policy soon. Futures markets are pricing in roughly an 86% chance of a 25-basis-point rate cut at the Fed’s December 9–10 meeting, as cooling growth and moderating inflation give policymakers more room to maneuver.

Still, officials will receive one more key inflation reading before the decision. Friday’s report is expected to show price pressures continuing to ease, though analysts warn that labor market resilience will shape the pace of rate cuts into next year.

Crypto-linked stocks felt the impact of Bitcoin’s latest slump. MicroStrategy, the largest corporate holder of Bitcoin, saw a sharp decline, while Coinbase and Robinhood posted mid-single-digit losses. Bitcoin miners, including Marathon Digital and Riot Platforms, fell between 7% and 9% as lower prices squeezed margins.

On-chain data added another layer of concern. Analysts at Bitfinex noted that recent Bitcoin declines triggered realized losses surpassing those seen at the major lows in August 2024 and April 2025. They described the market as being under clear stress, with investors seeking liquidity as weaker holders capitulate.

Such deep losses, they added, often appear toward the end of corrective phases, periods when selling pressure begins to exhaust itself and the market searches for a new equilibrium.