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
BTC up 0.78% in 15 minutes: leveraged capital moves in and spot buy pressure converges to drive the rally
From 2026-04-08 13:00 to 13:15 (UTC), the BTC price recorded a +0.78% return. The price fluctuated between 72067.5 and 72789.2 USDT, with a range amplitude of 1.00%. During this period, market volatility exceeded the usual levels of the same timeframe, trading activity rose noticeably, and overall market attention increased.
The main driving force behind this unusual move was the concentrated inflow of leveraged funds into the futures market. Within the event window, BTC futures open interest (OI) increased by 8.09% in a single day. Spot and derivatives market trading volume rose 12% month-over-month compared with the previous hour, indicating
GateNews2m ago
Iran to Implement Bitcoin Payment for Tanker Transit Tolls
Gate News message, according to the Financial Times, Hosseini stated that Iran will charge tanker transit tolls in Bitcoin. This marks a shift in the country's payment methods for maritime transit fees.
GateNews13m ago
Cango discloses selling 2,000 BTC in March, and its Bitcoin holdings drop to 1,025.69 BTC
Gate News , April 8, U.S.-listed Bitcoin miner Cango released a March operational update report. The report shows that in March, the company produced 27.98 BTC from self-mining and completed a strategic sale of 2,000 bitcoins, with the proceeds used to repay BTC-backed loans. As of the end of March, the company’s outstanding Bitcoin-backed loan total was $30.6 million, and its Bitcoin reserves fell to 1,025.69 BTC.
GateNews38m ago
Bitcoin ETF Sees Bank-Level Players: A Deep Dive into Morgan Stanley MSBT Listing
Morgan Stanley Bitcoin Spot ETF (MSBT) began trading on the NYSE Arca on April 8, becoming the first large commercial bank in the U.S. to launch a Bitcoin ETF. The 0.14% fee rate set a new market low record.
InstantTrends44m ago
BlackRock transferred 8,513 ETH and about 417 BTC to a certain CEX, with a total value of approximately $49 million
Gate News, on April 8, according to data monitored by Arkham, about an hour ago, BlackRock transferred 8,513 ETH worth $19.14 million to a certain CEX address via its Ethereum exchange-traded fund ETHA; additionally, it transferred 416.654 BTC worth $29.86 million to a certain CEX address via its Bitcoin exchange-traded fund IBIT.
GateNews1h ago
Exodus Movement 3 月末 BTC 持有量增至 628 枚，SOL 增至 17,541 枚
Gate News message. On April 8, publicly listed self-custody crypto company Exodus Movement released updated data on its digital asset holdings as of the end of March. The data shows that the company’s Bitcoin holdings increased to 628 coins (a net monthly gain of 18 BTC), its Ethereum holdings increased to 1,857 coins (a net monthly gain of 17 ETH), and its Solana holdings increased to 17,541 coins (a net monthly gain of 1,847 SOL).
GateNews1h ago
