Bitcoin News Today: Bitcoin's Plunge: Structural and Macro Headwinds Collide

Bitcoin's recent precipitous decline has drawn scrutiny from investors and analysts, with the cryptocurrency shedding over 32% of its value since October's peak. The selloff has been attributed to a confluence of macroeconomic shifts, liquidity pressures, and structural challenges in the crypto market. Four key factors underpin the current downturn, as revealed by recent data and expert analysis.

First, the unwinding of the yen carry trade has exacerbated liquidity stress. Japan's Bank of Japan [signaled a potential rate hike](https://finance.yahoo.com/news/yen-carry-crypto-trading-over-050428862.html) in December, marking the end of a three-decade-long era of ultra-low interest rates. This policy shift has driven up the cost of yen-based arbitrage strategies, where investors borrowed cheap yen to fund higher-yielding assets, including Bitcoin. As [yields on Japanese 2-year government bonds surged](https://markets.businessinsider.com/news/stocks/yen-carry-trade-boj-japan-interest-rate-hike-stocks-bonds-2025-12) to 1%-a 17-year high-traders scrambled to unwind leveraged positions, triggering volatility across global markets. Holger Zschäpitz, a German financial journalist, [noted that Bitcoin's near-perfect correlation with the yen](https://en.coinotag.com/breakingnews/bitcoin-near-perfect-yen-correlation-as-japan-rate-hike-prompts-reassessment-of-yen-funded-arbitrage-says-holger-zschäpitz) in recent sessions highlights how tightening Japanese monetary policy is reshaping crypto liquidity dynamics.

Second, Bitcoin ETF outflows have accelerated amid weak retail sentiment. Spot Bitcoin ETFs [ended a four-week streak of outflows](https://cointelegraph.com/news/spot-bitcoin-etfs-end-four-week-outflows-70m-weekly-inflows) with a modest $70 million net inflow in the latest week, but cumulative outflows since launch still totaled $4.35 billion. [BlackRock's IBIT, the largest ETF in the sector](https://cointelegraph.com/news/spot-bitcoin-etfs-end-four-week-outflows-70m-weekly-inflows), saw $113.7 million in daily outflows, reflecting broader investor caution. [BlackRock executives acknowledged](https://www.coindesk.com/business/2025/11/29/bitcoin-etfs-are-now-blackrock-s-top-revenue-source-exec-says) that such flows are typical during price drops, as retail investors often react to market sentiment. Meanwhile, [institutional demand for Bitcoin remains constrained](https://www.coindesk.com/markets/2025/08/27/nvidia-earnings-loom-large-with-bitcoin-traders-eyeying-correlation) by infrastructure gaps, with Mark Connors of Gold Bullion Reserves arguing that gold's established infrastructure and trust continue to outpace crypto.

Third, liquidity constraints tied to corporate Bitcoin holdings have intensified. Strategy, the corporate Bitcoin custodian formerly known as MicroStrategy, [has built a $1.44 billion USD reserve](https://decrypt.co/350459/bitcoin-giant-strategy-1-44-billion-usd-reserve-still-might-sell-btc) to buffer against dividend obligations, but its market-adjusted net asset value (mNAV) has fallen to 1.13, raising concerns about potential sales. CEO Phong Le [confirmed that the firm would consider selling](https://cryptoslate.com/strategy-new-last-resort-to-sell-bitcoin-could-trigger-on-15-dip-sets-1-4b-cash-reserve-contingency/) Bitcoin if mNAV drops below 1.0-a threshold currently 15% away-and capital markets close. This contingency underscores the fragility of Bitcoin's corporate adoption model, where balance sheet pressures could force asset sales at inopportune times.

Fourth, global macroeconomic uncertainty has dampened risk appetite. While U.S. consumers [spent a record $11.8 billion online](https://www.cbsnews.com/news/u-s-consumers-spent-a-record-11-8-billion-online-during-black-friday-sales/) during Black Friday, reflecting resilient retail demand, broader economic indicators-such as Treasury spending delays and inflationary pressures-have stoked fears of tighter monetary policy. [The S&P 500's annual rate of change dipping](https://ambcrypto.com/bitcoin-why-japans-yen-carry-fears-put-btcs-88k-support-at-risk/) into negative territory has historically signaled market bottoms, yet Bitcoin's CVDD support at $88,000 remains under threat. Analysts warn that without a reversal in macro conditions, further declines could test key technical levels.

The interplay of these factors suggests a prolonged period of volatility for Bitcoin. While short-term rebounds are possible, structural challenges-including corporate liquidity risks and yen carry trade dynamics-pose significant headwinds. Investors are now closely watching Japan's December policy meeting and Strategy's mNAV trajectory to gauge the next move in crypto markets.