Volatility Returns Ahead of Major Macro Week

On Saturday we warned of the volatility ahead of one of the biggest macro events this month: the US interest rate decision set for Thursday morning. This, along with the Bank of Japan’s decision later in December, marks a key moment for global markets.

Bitcoin has already started to reflect that anticipation. After spending most of the weekend consolidating around $89K, the market saw a sharp breakdown late last night. Bears appeared to take control as Bitcoin dropped nearly 2% within the hour, falling back below $88K. This move was triggered by a sudden wave of whale-driven selling. Analysts believe it was a coordinated effort as around 15,565 BTC, roughly $1.39 billion, hit the market in just one hour. Major players including Wintermute, Binance, BitMEX and Fidelity were all active sellers during that period, strongly suggesting a coordinated move.

But the downside was short lived. Bitcoin rebounded almost immediately, rallying nearly 5% over the next four hours. It was a swift reversal and a clear bear trap. However, bulls did not gain much ground either. Price has since pulled back nearly 2% from the early morning high and is now hovering just above $90K.

It was a wild night and possibly just a taste of the volatility to come. The move highlights how thin liquidity currently is and reinforces that market manipulation remains a real risk. On the bright side, this volatility did not result in major liquidations. Throughout 2025 we have seen several days where over $1 billion in leveraged positions were wiped out and October’s $20 billion flush is still fresh in many minds. In contrast, last night saw less than $450 million in liquidations which suggests significantly reduced leverage across the system compared to a month or two ago. That is a healthy sign.

Stormrake Spotlight: Pax Gold (PAXG) ($4,219)

Nothing to report from PAXG over the weekend as gold does not trade during that time, leaving the token largely rangebound. With gold trading now back online, PAXG should follow. There are signs of bullish momentum building which could lead to a breakout from its consolidation phase. However, price action will be heavily influenced by this week’s US rate decision and Powell’s speech.

BTC/USD Key Levels and Price Action:

Bitcoin’s volatility was on full display overnight. We saw a brief breakdown below the key level at $88,888 followed by a near-instant bounce. However, this bounce may have formed a lower high after the lower low made earlier in the session, which would signal a bearish structure. Momentum is sideways, and the range is clear, $88,888 marks the bottom and the yearly open at $93.5K is the top. One of these levels will give soon.

BTC Total ETF Flows for 7 Dec: (data not available at the time of writing)

*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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