[Japan Rate Hike Expectations and MicroStrategy Developments Impact Bitcoin, Drops Below $84,000]
On December 1, market sentiment cooled sharply, with Bitcoin hitting an intraday low of $83,786, down nearly 30% from its early October peak. Expectations for a rate hike by the Bank of Japan intensified, with traders pricing in a 76% chance of a December hike and nearly 90% for January next year. After Kazuo Ueda signaled 'early tightening,' Japan's two-year government bond yield rose to a 16-year high, triggering adjustments in global risk assets.
MicroStrategy announced the establishment of a $1.44 billion cash reserve and, for the first time, acknowledged the possibility of selling Bitcoin under certain conditions, causing its stock price to plunge as much as 12% intraday. Despite adding 130 BTC last week, debt pressure and market volatility have heightened sensitivity in sentiment.
The probability of a Federal Reserve rate cut in December rose to 87.6%, and QT officially ended today, withdrawing over $2 trillion in liquidity. The halt in balance sheet reduction is seen as a key event marking the liquidity bottom.