Bitcoin Dips Below $84K Amid Central Bank Rate Hike Fears

On Monday, December 1, Bitcoin’s price dropped to under $84,000 amid speculation about global central bank interest rate policies and overall negative sentiment in financial markets. This decline took place following a sharp price increase to $93,000 on Friday, November 28, representing a 10% loss in a few days. Bitcoin is now approximately 34% below its all-time high reached last month.

According to Coinbase data from TradingView, the price fell to around $83,800. Analysts pointed to central bank actions, especially the Federal Reserve in the U.S. and the Bank of Japan (BOJ), as key factors driving market movements.

Julio Moreno, head of research at CryptoQuant, told Telegram users that “Today’s sharp price decline was triggered by expectations that the Bank of Japan will hike interest rates.” BOJ Governor Kazuo Ueda announced that the bank is considering raising rates at its December policy meeting, according to Reuters. Following this, the Japanese yen strengthened, and the probability of a rate increase rose to 80%.

Mostafa Al-Mashita, cofounder and director of sales and trading for Secure Digital Markets, noted that “The recent hawkish signals from the Bank of Japan have become a critical focal point, causing the Japanese 10-year government bond yield to surge.” The yield hit its highest level since 2008, according to Google Finance. Maclane Wilkison, cofounder of Threshold Network, said via email that “the BOJ’s signaling of an impending rate hike has tightened global liquidity expectations and rattled risk assets.”

Market attention also focuses on the upcoming Federal Open Market Committee meeting scheduled for December 9 and 10. Brett Sifling, wealth manager at Gerber Kawasaki Wealth & Investment Management, said via email that “I think that future rate cuts at the Fed have been coming into question. As of a few weeks ago, markets were betting that rates would hold steady.” He added that “More recently, this conversation has changed and rate cuts are back on the table.”

William Stern, founder of Cardiff, commented via email, “The smart money is moving to the sidelines ahead of December 9th. We rallied to $93,000 on hope, but we dropped to $83,800 on fear.” He noted that “institutional allocators are aggressively de-risking” because they are unwilling to hold a volatile asset like Bitcoin through a potential surprise from Federal Reserve Chair Jerome Powell.

Several analysts highlighted the overall weak market conditions. Alexis Sirkia, chairman of Yellow Network, said via email that “Bitcoin’s slide over the past days looks far more like a reaction to liquidity jitters than any shift in its core outlook.” He explained that “money didn’t just move out of crypto, it moved out of anything carrying volatility.”

Moreno also pointed out that Bitcoin’s losses occurred amid negative on-chain data and sentiment. The CryptoQuant Bull Score Model, which measures market health using metrics like network activity and liquidity on a 0–100 scale, dropped to zero for the first time since January 2, 2022. Scores below 40 usually indicate bearish conditions, while above 60 tend to support bullish rallies, according to their website.

Additionally, Bitcoin deposits to exchanges have been increasing, signaling that traders and investors are lowering their crypto market exposure. This trend was also highlighted by CryptoQuant data showing rising bitcoin transfers to trading platforms.

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