Bitcoin's Plunge | $150 Billion Loss Amid Japan's Yield Shift
Edited By
Lina Chen
Bitcoin saw a drastic decline, falling below $87,000 on December 1, 2025, as rising Japanese government bond yields triggered a risk-off sentiment across markets. This drop erased about $150 billion from the cryptocurrency's market cap, raising concerns among investors.
Market Instability: The Players Speak
Commentators on various forums suggest that this selloff is primarily driven by institutional players rather than retail investors. One comment noted, "This makes sense. All these articles saying retail dumped Sunday night are laughable. This is institutional."
Another user expressed skepticism about Bitcoin's role as a safe haven, stating, "The fact that Japanese central bank policy can have this effect on BTC what's the point of any crypto if it’s just a leveraged bet on fiat?"
Factors Behind the Price Drop
Japanese Policy Impact: Changes in Japan’s central bank policy are leading global markets toward caution. Increased bond yields indicate less liquidity, affecting Bitcoin's stability and investor sentiment.
Weak Trading Volumes: The Bitcoin market faced low trading volumes and thin order books, making it susceptible to significant price moves.
Structural Market Weakness: The recent selloff showcases vulnerabilities, with retail investors buying at low prices while large institutional players remain hesitant.
"During 2024, we saw Bitcoin drop about 20% due to similar macro conditions. We could see $74K BTC again," mentioned one user, highlighting past trends.
What's Next for Bitcoin?
As investors brace for potential further decline, the focus shifts to finding support in the mid-$80,000s. Opinions on recovery vary, with some users confident of a bounce to $150,000. However, ongoing global economic uncertainty looms. Will Bitcoin hold its ground or plunge deeper?
Key Insights
🔻 Bitcoin's market cap loss recorded at $150 billion after recent drops.
📊 "Retail investors are buying distressed levels while institutions pull back," a user noted.
⚠️ Calls for caution as many foresee further declines under current market conditions.
Speculating on Bitcoin's Path Ahead
As Bitcoin searches for stability, there’s a strong chance we may see fluctuations in the mid-$80,000s before deciding its fate. Experts estimate between a 60 to 70 percent likelihood that the cryptocurrency could bounce back towards the $100,000 mark as institutional players begin to re-enter the market, sensing a buying opportunity after the recent plunge. However, the economic climate remains unpredictable, with rising interest rates globally hinting at a prolonged period of turbulence. If market conditions worsen, the probability of Bitcoin hitting a low around $74,000 could rise to around 40 percent, reinforcing caution among investors.
A Different Shade of History
Reflecting on the dot-com bubble of the late 1990s, one can find an intriguing parallel to Bitcoin's current turmoil. Just as tech stocks inflated rapidly, driven by excitement and speculation, the eventual crash shook market confidence and led to a drawn-out recovery. Many fled to emerging companies that offered new technologies; today’s migration towards altcoins and blockchain innovations echoes that era of cautious optimism. In both cases, the upheaval forces investors to rethink value in a rapidly changing landscape, blurring the lines of what truly defines a secure investment.