Bitcoin Price Plunges 8% to $84,000 as December Opens With More Market Jitters

Bitcoin's price fell sharply by 8% to the mid-$84,000s early Monday, erasing over 30% from October's record highs. This downturn followed a brief recovery and was driven by a confluence of factors: a security incident at Yearn Finance that rattled DeFi markets, and mounting macro pressure. Specifically, comments from Bank of Japan Governor Kazuo Ueda signaling a potential December rate hike caused Japanese government bond yields to spike, triggering a global risk-off sentiment amplified by low liquidity.

Thin liquidity, noted as one of the lowest stretches since July, exacerbated the selloff, leading to a liquidity event where over $630 million in trader liquidations occurred in 24 hours. Uncertainty surrounding the U.S. Federal Reserve's monetary policy—with markets anticipating a rate cut—also contributed to investor anxiety. Amid the slide, MicroStrategy announced it secured a $1.4 billion reserve to cover preferred-stock dividends while also purchasing an additional 130 BTC. Meanwhile, institutional interest remained, with BlackRock increasing its IBIT shares and JPMorgan rolling out a structured note tied to the ETF.

(Source：Bitcoin Magazine)