Bitcoin's price has sharply declined from $95,000 to $85,000, with over 200,000 traders liquidated and $600 million wiped out in the past 24 hours. This downturn follows a complex interplay of global monetary policies and seasonal liquidity issues. On December 11, the Federal Reserve cut interest rates by 25 basis points but signaled limited future cuts, tightening liquidity expectations. Meanwhile, the Bank of Japan is expected to raise rates on December 19, potentially disrupting the yen carry trade and further straining global liquidity. The upcoming Christmas holidays are expected to exacerbate these issues, as reduced trading activity could amplify market volatility. Historically, late December to early January is a period of high volatility in the crypto market, and the current combination of policy shifts and liquidity constraints could lead to significant price swings. Traders are advised to monitor the Bank of Japan's decisions closely and manage leverage carefully to navigate the turbulent market conditions.