Bitcoin Falls Below $84,000 as BOJ Rate Hike Signals and Strategy Concerns Trigger Selloff

Bitcoin fell below $84,000 on Dec. 2, dropping over 8% at one point as total crypto market capitalization slipped beneath $3 trillion, with $974 million in liquidations across 260,000 traders in 24 hours, BlockBeats reports. Arthur Hayes attributed the selloff to Bank of Japan signals of a potential December rate hike, noting USD/JPY moves in the 155-160 range reflect a hawkish BOJ stance, while Threshold Network co-founder Maclane Wilkison said the central bank's tightening signals dampened global liquidity expectations and pressured risk assets. Market concerns intensified around Strategy after S&P Global Ratings downgraded Tether's USDT stability rating from "constrained" to "weak," warning that a Bitcoin price decline could create undercollateralization risks, though Tether CEO Paolo Ardoino responded that the group holds nearly $30 billion in equity. Tribe Capital's Boris Revsin characterized the event as a "leverage washout" amplified by fading rate-cut expectations, persistent inflation, weakening employment, and rising geopolitical risks, while Cardiff founder William Stern noted institutional investors are reducing exposure to volatile assets like Bitcoin ahead of the Federal Reserve meeting.