On December 1st, during the Asian early session, the price of Bitcoin fell nearly 5%, dropping below $87,000, erasing recent gains. This decline is mainly attributed to the surge in Japanese government bond yields, which triggered a risk aversion sentiment, coupled with low trading volume leading to severe market liquidity shortages. Data shows that Bitcoin has moved down from the $91,000 consolidation range, with the total market capitalization of Crypto Assets evaporating by about $150 billion.
10x Research pointed out that the crypto market experienced its lowest trading volume 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 re-pricing. In November, Bitcoin's market capitalization fell by nearly 18%, and market momentum quickly reversed, forcing leveraged long positions to be liquidated.