Daily Market Update: Bitcoin Falls 8% to $84,000 as Crypto Stocks Decline

TLDR

• Bitcoin dropped 8% on Monday from $91,000 to $84,000 amid fears Japan could raise interest rates, triggering concerns about yen carry trade unwinding
• MicroStrategy stock hit a 52-week low despite establishing a $1.44 billion cash reserve and adding 130 bitcoins to reach 650,000 total holdings
• Crypto-related stocks suffered losses with Coinbase down 20%, Circle down 38%, Robinhood down 16%, and MicroStrategy down 40% over the past month
• Bitcoin ETFs recorded their second-worst month in November with $3.5 billion in outflows, pushing the token down 30% from its October all-time high
• Analysts expect continued volatility in the near term but maintain that a sustained crash requiring bitcoin to fall below $12,700 would need multiple macro shocks

Bitcoin fell sharply on Monday, declining from around $91,000 on Friday to as low as $84,000. The 8% drop marked the cryptocurrency’s worst single-day performance since March.

The selloff came amid concerns that Japan might raise interest rates. This sparked fears about a potential unwinding of yen carry trades, where investors borrow Japanese yen at low rates to buy assets like US stocks and bitcoin.

Market Reaction Mirrors August 2024 Pattern

A similar unwinding occurred in August 2024 when bitcoin plunged from over $66,000 to around $54,000 in just a few days. That represented an 18% drop before the market recovered and reached new highs.

Nic Puckrin, investment analyst and co-founder of Coin Bureau, noted that history appears to be repeating itself. He advised investors to prepare for more volatility but pointed to the favorable macro backdrop for risk assets.

The Federal Reserve is widely expected to cut interest rates in December. Futures markets are pricing in an 87.6% probability of a rate cut at the Fed’s December 10 policy decision.

Bitcoin exchange-traded funds posted their second-worst month in November. The funds saw $3.5 billion in outflows during the month.

The token is now down more than 30% from its October all-time high above $126,000. The current price stands at approximately $86,948 as of Tuesday morning.

Crypto Stocks See Heavy Losses

Crypto-related stocks experienced steep declines over the past 30 days. Coinbase dropped roughly 20% while stablecoin issuer Circle fell 38%.

Coinbase Global, Inc., COIN

Robinhood declined 16% during the same period. MicroStrategy, the largest public holder of bitcoin, saw its stock fall approximately 40% over the past month.

MicroStrategy stock hit a 52-week low on Monday. The company announced it had established a US dollar reserve of $1.44 billion through an equity offering.

The cash reserve will support payment of dividends on preferred stock and interest on outstanding debt. This announcement came after concerns arose that lower bitcoin prices could force the company to sell holdings.

MicroStrategy added 130 bitcoins to its holdings last week. The company now holds a total of 650,000 bitcoins.

Analyst Perspectives on MicroStrategy

Bernstein and Benchmark analysts called concerns over MicroStrategy’s future overstated. Mark Palmer from Benchmark noted the company would only face issues if bitcoin fell below $12,700.

That would require an 86% decline from current levels. Palmer stated that while 80%+ drawdowns have occurred in bitcoin’s history, multiple macro shocks would need to happen simultaneously for such a reversal.

The company said yearly net income could range from a loss of $5.5 billion to a profit of $6.3 billion. Bernstein analysts noted they are still looking for clear signs for bitcoin to bottom out.

Trading Sentiment and Market Outlook

The price action suggests weak market sentiment according to Bernstein analyst Gautam Chhugani. This weakness has impacted digital asset equities across the board.

A 10X Research client note on Monday stated that a sustained rally appears unlikely in the near term. The firm suggested conditions could shift quickly but expects year-end gains to be limited.

US stock futures slid early Tuesday morning as investors assessed the fragile start to December trading. Contracts tied to major indexes ticked down 0.2%.

The lackluster trading follows a down session on Wall Street that snapped five-day winning streaks for all three major indexes. The research note indicated that 2026 may present a very different setup for crypto markets.

The post Daily Market Update: Bitcoin Falls 8% to $84,000 as Crypto Stocks Decline appeared first on CoinCentral.