BlackRock transferred 1,634 BTC, valued at approximately $142.6 million, to Coinbase Prime on December 2, according to Lookonchain. The transaction marks a significant institutional movement of Bitcoin to the custody platform.

Bitcoin and digital tokens are experiencing intensified selling pressure as part of a wider retreat from high-risk assets across markets, the Wall Street Journal reports. Patrick Horsman, Chief Investment Officer at crypto treasury firm BNB Plus, said investors are reducing exposure as the economic outlook darkens, projecting Bitcoin could decline to $60,000. The current selloff differs from previous crypto winters, including 2022, as it occurs without major fraud-driven collapses like Mt. Gox or FTX that previously triggered broader market crashes.

MicroStrategy said on Dec. 2 it may sell portions of its bitcoin holdings if its internal mNAV metric falls below 1 and refinancing becomes unavailable. The firm established a $1.44 billion cash reserve through share issuance to prepare for potential market downturns. MSTR stock fell over 12% intraday on Monday, extending year-to-date losses to approximately 40%, while bitcoin declined over 4%. The company holds approximately $82 billion in convertible bond obligations.

Asset management firm Tidal Investments purchased 351,619 shares of Strategy (MSTR) stock worth approximately $60 million, BitcoinTreasuries.NET data show. The acquisition was disclosed on December 2. Strategy, formerly MicroStrategy, is known for its substantial Bitcoin holdings.

Wintermute reported on Dec. 2 that market structure has undergone a clean reset following deleveraging triggered by Bank of Japan rate hike expectations, with leverage significantly reduced, funding rates returning to neutral, and spot participation markedly strengthened. Bitcoin 90-day annualized basis stands near 4% to 5%, while Ethereum basis approaches 3% to 4%, reflecting cycle lows. Perpetual contract open interest has declined from approximately $230 billion in early October to around $135 billion currently, removing excess leverage and reducing mechanical liquidation risks. The combination of lower leverage, negative funding, and healthier spot participation typically precedes market recovery once macro conditions stabilize, the firm noted.

A whale address that has executed four Bitcoin short positions since March reduced its BTC short by 20 coins 15 minutes prior, realizing $501,000 in profit and bringing year-to-date gains to over $57.58 million, on-chain analyst Ai Yi reports. The trader holds 1,081.98 BTC in remaining short positions with an unrealized profit of $26.83 million, position value of $93.6 million, average entry at $111,499.3, and funding fee income of $9.425 million. Limit buy orders totaling 1,300 BTC have been placed between $67,244 and $67,844, indicating plans to close shorts and initiate long positions if prices decline to that range.

Crypto analyst Willy Woo said on Dec. 2 that M2 money supply growth does not guarantee Bitcoin price increases, BlockBeats reports. Woo noted Bitcoin typically leads M2 trends during late-cycle phases, adding his capital flow models suggest the market may have already peaked. He explained that while Federal Reserve rate cuts and monetary expansion might imply rising global M2, strong dollar demand from safe-haven-seeking investors could strengthen the dollar and reduce global M2 instead.

Bitcoin rebounded to near $87,000 on Dec. 2 after U.S. ISM manufacturing PMI data showed contraction at 48.2 for November, the ninth consecutive month below 50, Bitunix analysts said. The cryptocurrency faces near-term resistance at $88,000 where short liquidation clusters concentrate, while downside support sits at $85,000 and $83,800 where long positions are densely positioned. Bitunix analysts noted that directional movement will likely be driven by liquidation density and macro sentiment shifts, with manufacturing weakness reinforcing rate cut expectations while potential Federal Reserve leadership changes introduce forward guidance concerns.

Bitcoin miners are experiencing their most challenging profitability environment on record, with hashrate revenue declining to approximately $35/PH/s from around $55/PH/s in Q3, Miner Weekly reported on December 2. The figure now sits below the average all-in cost of $44/PH/s for major public miners. With network hashrate approaching 1.1 ZH/s, payback periods for the latest mining equipment now exceed 1,000 days, surpassing the roughly 850 days remaining before the next halving.