The hint of the Bank of Japan's interest rate hike has sparked speculation about yen arbitrage Close Position, with Bitcoin falling to 83K.

The US stock market opened poorly in December, affected by speculation that the Bank of Japan (BOJ) may raise interest rates, leading to a trap of yen arbitrage Close Position. The crypto market declined first, with Bitcoin dropping from the 90K threshold during the Asian session yesterday, reaching a low of just above 83K in the evening, with nearly 1 billion dollars in positions liquidated over 24 hours.

The PMI saw its largest decline in four months, and the likelihood of the Federal Reserve lowering interest rates next week is high.

Data released on Monday showed that affected by weak orders, the US November ISM Manufacturing Purchasing Managers Index (PMI) fell to 48.2, the largest decline in four months. In addition to the inflation data released on Friday, other relevant economic data this week includes the November ADP private sector employment data and the preliminary consumer confidence index for December.

Ulrike Hoffmann-Burchardi of UBS Global Wealth Management stated:

“Historically, when the economy is not in recession and the Federal Reserve is cutting interest rates, the stock market performs best. The latest data shows that the Fed is more likely to cut rates by 25 basis points.”

She also pointed out that the current weakness in the US economy may be temporary, and global economic growth is expected to accelerate in 2026.

The rise in interest rates by the Central Bank of Japan has triggered speculation about arbitrage and closing positions on the yen? Bitcoin has fallen to 83K.

Bitcoin has been falling since yesterday's Asian session from the 90,000 mark, dropping to just above 83K at its lowest during the evening, influenced by speculation that the Bank of Japan may raise interest rates, leading to arbitrage close positions in yen. The crypto market has started to decline, with nearly 1 billion dollars worth of positions liquidated in the last 24 hours.

(Is a rate hike in Japan expected in December? Bank of Japan Governor Ueda Kazuo hints at taking action)

MicroStrategy establishes a $1.4 billion reserve to ease concerns about selling Bitcoin.

The pioneer of Bitcoin reserve strategies, MicroStrategy, originally named MicroStrategy (, announced the establishment of a reserve fund of $1.44 billion to pay future dividends and interest to alleviate people's concerns. Previously, CEO Phong Le admitted that once the company's mNAV remains below 1 for an extended period and financing channels become exhausted, “selling some BTC” will become the last resort to sustain the company's finances.

)Will MicroStrategy sell coins? Strategy CEO admits: If financing is difficult, selling BTC will be a last resort(

Last week, the US spot Bitcoin ETF only saw an inflow of $70 million, while it experienced about $4.6 billion in outflows over the past month. Most of the outflow pressure, approximately $2.3 billion, came from BlackRock's IBIT, which has faced investor redemptions for five consecutive weeks, marking the longest consecutive redemption period since its establishment in January 2024. However, company executives stated that the ETF has high liquidity, and this situation is quite normal. They also mentioned that demand is strong this year, with IBIT's asset size nearly surging to $100 billion when market demand peaked.

)IBIT net outflow exceeded 2.3 billion dollars in November, BlackRock: this is quite normal(

This article suggests that the Bank of Japan's interest rate hike hints have triggered speculation about yen arbitrage Close Position, and Bitcoin has plummeted to 83K, first appearing in Chain News ABMedia.