On December 1st, during the Asian morning session, the price of Bitcoin fell nearly 5%, dropping below $87,000, erasing recent gains. This decline is primarily driven by risk-averse sentiment triggered by soaring Japanese government bond yields, along with low trading volume leading to a severe lack of market liquidity. Data shows that Bitcoin has declined from the $91,000 consolidation range, with total market capitalization of Crypto Assets evaporating by about $150 billion.
10x Research pointed out that the crypto market has experienced the lowest trading volume in a week since July, with a thin order book unable to withstand institutional selling pressure, causing the price decline to evolve from a technical correction into a liquidity crisis. BRN research director Timothy Misir stated that this is not a controlled correction, but rather a liquidity shock caused by position adjustments and macro repricing. In November, Bitcoin's market capitalization fell by nearly 18%, and market momentum quickly reversed, forcing leveraged long positions to be liquidated.
The derivatives market shows a differentiation of risks. Bitcoin traders are reducing leverage, with open interest in futures falling to $29.7 billion and the funding rate at only 4.3%. In contrast, Ethereum traders are still excessively leveraging despite low network activity, with the funding rate rising to 20.4% and open interest increasing by $900 million, indicating an imbalance in risk pricing.
Macroeconomic factors have also exacerbated market volatility. The yield on Japan's 10-year government bonds has risen to 1.84%, and the two-year yield has broken through 1% for the first time, reshaping market expectations for yen arbitrage trades. Arthur Hayes pointed out that expectations of a rate hike by the Bank of Japan will increase the funding costs for global speculators. Additionally, the price of gold has risen to $4250 per ounce, reflecting the hedging demand of global traders against inflation and fiscal risks.
On-chain data indicates that funds are flowing towards retail investors, with long-term holders increasing their holdings at a slower pace. Market supply is concentrated in the hands of stronger investors, but there is still an excess above the key resistance level. The balance of stablecoins on exchanges has increased, showing that funds are ready, but have not yet entered the market aggressively. The current market is focused on the support level in the mid-80,000s; if it cannot return to the low 90,000s, prices may further test the vicinity of 80,000. (CryptoSlate)
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Fraudsters Posing as Iranian Authorities Demand Bitcoin, USDT Payments from Ships at Strait of Hormuz
Gate News message, April 21 — Scammers impersonating Iranian authorities have targeted shipping companies with vessels stranded west of the Strait of Hormuz, demanding Bitcoin and Tether (USDT) payments in exchange for safe passage, according to maritime risk firm Marisks.
The fraudsters
GateNews1m ago
Bitcoin Spot ETFs Post $1B Net Inflows Last Week, Largest in 3 Months
Abstract: Bitcoin spot ETFs attracted about $1 billion in net inflows last week, led by BlackRock's IBIT with $906.1 million and Morgan Stanley's MSBT with $71.1 million in its first full trading week, following $786.3 million the previous week.
Summary: Bitcoin spot ETF inflows totaled about $1B last week, the largest in three months; IBIT led with $906.1M, while MSBT added $71.1M in its first full week.
GateNews1h ago
Bitcoin Tops $75K as Ceasefire Hopes Drive Rally
Bitcoin rose on ETF demand while miners sold BTC; margins tightened and AI/HPC-focused pivots could turn miners into AI data-center players, potentially boosting valuations as AI demand grows.
Abstract: Bitcoin rose on ETF demand amid miner selling and tight margins. The report highlights a strategic pivot by public miners toward AI/HPC infrastructure, signaling a potential shift from pure bitcoin mining to AI data-center services and higher valuation multiples.
CryptoFrontier1h ago
BlackRock IBIT Adds 3,355 BTC in $256M Institutional Inflow on April 20
IBIT led Bitcoin ETF inflows with $256M (≈3,355 BTC) on Apr 20, pushing total spot-ETF inflows near $58B and assets over $100B, underscoring rising institutional demand and access via regulated ETFs.
Abstract: This report notes that BlackRock's iShares Bitcoin Trust (IBIT) attracted $256 million in net inflows on April 20, about 3,355 BTC, signaling robust institutional interest in Bitcoin spot ETFs. IBIT dominated daily flows, with Bitcoin ETF inflows totaling over $238 million for the day and cumulative spot ETF inflows approaching $58 billion; overall spot Bitcoin ETF assets exceed $100 billion, representing more than 6% of Bitcoin's market cap. The trend suggests growing institutional confidence in Bitcoin as a long-term asset, aided by regulated access and simplified custody; IBIT remains the leading issuer, though Fidelity and ARK Invest are also attracting capital.
GateNews2h ago
Oil Price Surges 5% as Hormuz Goes Dark and US Seizes Iranian Vessel
Oil price news Monday showed Brent crude jumped 4.3% to $94.18 and WTI rose 5.6% to $88.54, reversing Friday's 9% collapse as Iran reimposed Strait of Hormuz restrictions over the weekend, the US Navy seized the Iranian cargo vessel Touska, and Kpler maritime data recorded zero tanker crossings of t
Cryptonews2h ago
Scammers Pose as Iranian Authorities to Extort Stranded Shipowners in Bitcoin and Tether
Gate News message, April 21 — Unknown actors sent fraudulent messages to shipping companies with vessels stranded west of the Strait of Hormuz, claiming to be Iranian authorities and offering safe passage in exchange for fees paid in Bitcoin or Tether, according to Greek risk firm MARISKS. The messa
GateNews3h ago
