#DecemberMarketOutlook 📉 Financial Market Headwinds (December 2025)

Bitcoin Price Volatility: Bitcoin was trading around $88,400 as part of a wider crypto market sell-off. The price dropped below $87,000 in morning Asia trading, with traders bracing for a potential test of the $80,000 support level after breaching a critical support near $90,954. This drop is attributed to a "risk-off start to December" and a leverage flush-out that has wiped out hundreds of millions in leveraged long positions.
Robert Kiyosaki's Warning: The author of "Rich Dad Poor Dad," Robert Kiyosaki, has issued a stark warning that the "biggest crash in history" has already begun across the US, Europe, and Asia. He attributes this to structural shifts, including AI-driven job losses and a subsequent collapse in real estate markets. He advises investors to protect themselves with hard assets like silver, gold, Bitcoin, and Ethereum.
The Double Liquidity Squeeze: The financial markets are facing a dual pressure on liquidity:
Japan's Policy Shift: The Bank of Japan's move away from ultra-loose monetary policy and a rise in Japanese Government Bond (JGB) yields are making domestic bonds more attractive. This is causing a repatriation of capital as Japanese investors close out international positions (like the "yen carry trade" where they borrowed cheap yen to invest abroad), draining global liquidity from markets like US Treasuries, equities, and, as noted, digital assets.
U.S. Financing Tightening: U.S. money markets were also experiencing a liquidity squeeze, with stress in the repo market. The Federal Reserve was watching these conditions closely as it weighed the trajectory of interest rates heading into 2026.