Crypto Market Outlook: Bitcoin, Ethereum, and XRP Tumble as BoJ Hawkishness Sparks Risk-Off Rout

• Bitcoin (BTC): Surrenders the $87,000 level; fears of a "Yen carry trade unwind" put $80k back in play.

• Ethereum (ETH): Bulls struggle to defend the $2,800 pivot; a breakdown below $2,623 risks a flush toward $2,100.

• XRP: Clings precariously to the psychological $2.00 handle; bears are eyeing the $1.90 support.

Bitcoin (BTC), Ethereum (ETH), and Ripple’s XRP have stumbled into December on the back foot. All three majors slumped more than 4% during Monday’s European session, extending last week’s weakness and threatening critical support zones.

The catalyst for this fresh wave of selling is macro-driven: Bank of Japan Governor Kazuo Ueda signaled that interest rate hikes remain firmly on the table if economic data aligns with forecasts. This hawkish pivot has rattled global markets, reigniting fears of a Yen carry trade unwind—a scenario that drains liquidity from risk assets and puts crypto bulls on the defensive.

Bitcoin: Bulls Retreat, Exposing Deeper Correction Risks

Bitcoin is changing hands below $87,000 on Monday, threatening to close the session as a bearish marubozu on the daily chart if sellers maintain control. Intraday price action is essentially an extension of the pullback triggered after last week’s failed retest of the $92,800 resistance, with every bounce being aggressively sold into.

Momentum indicators have soured. The daily Relative Strength Index (RSI) sits at 33, tipping back toward oversold territory. This shift suggests supply is overwhelming demand just as short-term traders attempted to buy the dip. If the RSI pierces 30 and sustains those levels, it would signal that the downtrend has transitioned from a quick shakeout to a momentum-driven correction. Similarly, the MACD is flashing a warning sign, threatening a bearish cross below the signal line.

BTC/USDT daily price chart

Bears have a clear roadmap. The immediate downside target is the November 21 low at $80,600. If macro headwinds persist and this floor gives way, BTC could be dragged toward the April 7 low at $74,508, marking a significantly deeper reset. Conversely, a dovish surprise from the FOMC could revive risk appetite, making a rebound toward $90,000 a reasonable target for any relief rally.

Ethereum: Supply Overwhelms Demand at Key Pivot

Ether is enduring a rough start to the month, shedding roughly 5% to test the lower bounds of the $2,800 demand zone. While buyers are attempting to defend this area, the order flow suggests they are absorbing heavy selling rather than sparking a short-covering rally.

ETH/USDT daily price chart

The "line in the sand" is the November 21 low at $2,623. A confirmed daily close below this level would invalidate the recent consolidation range and open the floodgates for a steeper decline toward the June 22 low at $2,111. Momentum mirrors Bitcoin’s precarious setup, with the MACD on the verge of a bearish cross, suggesting that sellers are tightening their grip on the daily market structure.

XRP: Clinging to the $2.00 Handle

XRP is following the broader market lower but with high stakes at the $2.00 psychological handle. Down over 4% on Monday following Sunday’s losses, the token is trading uncomfortably close to this round number. For bears, the next clear objective is the $1.90 support (June 22 low), a breach of which would erase the bulk of the recent breakout gains.

XRP/USDT daily price chart

Technical signals offer little comfort. The daily RSI at 40 indicates rising selling pressure with ample room for further downside before conditions become oversold. However, if XRP can stage a reversal here, a rebound toward the descending resistance trendline near $2.20 remains in play.