Bitcoin and Ethereum are facing renewed downside pressure, with BTC slipping from around $91,000 to $88,000 and ETH holding near $3,100 as markets brace for the potential Bank of Japan interest rate hike.

A stronger yen raises the risk of unwinding yen carry trades which is a move that can temporarily weigh on crypto valuations as leveraged positions reset across global markets.

However, the BOJ’s tightening stands in contrast to widely expected Fed rate cuts in early 2026, setting up a period of heightened volatility that often creates attractive accumulation windows for long-term investors.

We expect BTC to retest the $95,000–$100,000 range by early 2026, while ETH could climb toward $3,800 as institutional flows resume and macro conditions stabilize.

Key indicators worth monitoring include the Crypto Fear & Greed Index now sitting at extreme fear levels near 20, rising volatility metrics, and yen-driven liquidity shifts across global markets.

For investors, disciplined risk management will be crucial, but these cross-market dynamics ultimately support deeper liquidity, stronger institutional participation, and continued innovation across the broader crypto ecosystem.

Ignacio Aguirre, CMO at Bitget

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