Bitcoin dropped more than 1% to around $87,000, remaining in consolidation near recent lows reached in November, as year-end liquidity stayed thin and risk sentiment cautious. The digital asset is set to close Q4 with a loss of nearly 22%, marking its weakest Q4 performance since the 2018 market collapse, and heading for an annual loss of over 6% in 2025. This comes amid lingering macroeconomic pressures, while on-chain indicators suggested subdued activity from miners and large holders. Uncertainty over future rate hikes has also muted risk appetite, particularly for yen-funded crypto trades following the Bank of Japan’s rate increase to 0.75% in December. Meanwhile, delays in US regulations and large fund outflows contributed to the sell-off in altcoins. Ether and Solana also fell more than 1%.