Bitcoin โขSlides Below $88,000 as Macroeconomic Shifts and โขInvestor Concerns Trigger Sell-Off
December โ1, 2025 – Bitcoin prices tumbled to a low of $83,000 today โamid a confluence of factors including risingโ Japaneseโ government bond yields, shifting expectations for global monetary policy, and renewed investor anxietiesโฃ surrounding potential Bitcoin sales. The downturn erased nearly $1โ billion in leveraged bets, according to Bloomberg data.
The yenS appreciation โagainst theโค dollarโ is contributing to theโค pressure, raisingโค the possibility of an unwinding of the yen carry trade, which historically weighs on global risk โassets, includingโ cryptocurrencies. “Markets are starting to price โin the possibilityโ of an accelerated unwinding of theโข yen โฃcarry trade, which historically tends to weigh on globalโ risk assets, includingโ cryptocurrencies,” explained โCoinEx Chiefโ Analyst Jeff โKoh.
Investor focus has shifted toโข the direction of global monetary policy. Initial panic over fallingโ expectations for aโฃ US interest rate cut in December has givenโ wayโ to growingโข anticipation of potential โcuts by the US Federal Reserve. Concurrently, the Bank of โคJapan โคfaces increasing pressure to raise interest rates.”There was panic โคwhen expectations for aโ US interest rateโข cut in December โfell to 30%, but nowโ there isโ a growing expectation that โขthe US Federal โReserve (Fed) will cutโ interest rates again. On the other hand,โค there โis a growing possibility that the bank of Japan will raise interest rates,” said Karim Dandasy, an over-the-counter (OTC) trader at Flowdesk.
Adding to the negative sentiment,โ Strategy, a significant Bitcoin holder, announced โit has allocated $1.4โข billionโ (approximately 220 billion yen) to reserves to cover future dividends and interest payments. โขThe move, intended to alleviate fears of forced Bitcoin sales, failed to reassure investors, and the company’s stock price dropped asโค much as โ12%.
Further illustrating theโ shift in investor sentiment, U.S. spot Bitcoin ETFs experienced $70 million in outflows lastโข week, totaling approximately $4.6 billion in outflows over the past month. The iShares Bitcoin โTrust accounted for theโฃ majority ofโ the withdrawals, marking its fifth consecutive week ofโ outflows sinceโค its January 2024 listing.
