The crypto market is deep in the red today. Total market cap is down 5.26% and sits at $2.92T, while the Bitcoin price has dropped sharply after losing key support levels overnight.
Many traders called this a “Bitcoin failure,” but the truth is very different. BTC didn’t fail. The global monetary system buckled first, and Bitcoin reacted to the shock.
What we’re seeing now is a macro-driven repricing, not a collapse of crypto fundamentals.
Market Reaction to Macroeconomic Shifts
StockMarket.News shared on X that the Bitcoin price sold off because macro conditions and market positioning lined up badly at the same moment. Japan’s two-year bond yield popped above 1% for the first time since 2008.
That single move signaled that the Bank of Japan might finally tighten policy after decades of ultra-cheap money. When that happens, every risk asset in the world gets repriced. Volatility spikes. Big money exits the fastest, most liquid assets first. And nothing moves faster than Bitcoin.
The initial drop cracked short-term support levels. That triggered stop-loss orders and then forced liquidations. With so many long positions stacked up, exchanges started auto-selling hundreds of millions in leveraged longs into a thin overnight order book.
Once that happens, the chart doesn’t fall in steps. It falls in a straight line. Every liquidation wipes out the next set of bids and drags more traders into the same trap.
Bitcoin wasn’t failing. Leverage was.
Bitcoin’s selling off because macro and positioning lined up badly at the same time. Japanese 2 year bond yields popping above 1% for the first time since 2008 is the market’s way of saying the Bank of Japan might actually tighten after years of ultra cheap money. When that… https://t.co/6EAoQvmtVD
— StockMarket.News (@_Investinq) December 1, 2025
Bitcoin Is Acting Like a Macro Asset, Not a Fantasy Hedge
The deeper point from the thread is simple. Bitcoin is behaving like a macro asset. It responds to interest rate expectations, liquidity cycles, and global money conditions.
It is not acting like a magical digital gold that floats above the financial system. As long as yields rise and safe assets offer better returns, the BTC price faces headwinds and trades like high-beta risk.
This explains why yesterday’s move happened without any major news. Liquidity was thin. Leverage was high. A single macro shock was enough to cause a domino effect.
December 1: The Day the Monetary Order Broke
Shanaka Perera described December 1, 2025, as the day the monetary order broke. The Federal Reserve officially ended Quantitative Tightening, not because it worked, but because it could not continue. The Fed froze its balance sheet at $6.57 trillion after draining $2.4 trillion since 2022. It had no room left.
At the same time, the real economy is flashing warning signs everywhere. The Cass Freight Index has dropped for 33 straight months. October shipping numbers collapsed 7.8%, making it the worst October since 2009. This is happening while markets celebrate rate cuts.
Other signals are just as severe. Shanghai silver inventories are at their lowest since 2015. Japan’s 10-year bond yield hit its highest level since 2008. Bitcoin hit $126,210 in October but now trades under $87,000. The digital gold narrative just took its first real hit.
The United States is also dealing with its own structural issues. Tariff revenue has tripled, yet the deficit still hit $1.8 trillion. Interest payments on national debt crossed $1 trillion for the first time in history. The government shutdown erased all October inflation data, leaving the Fed cutting rates “blind.”
None of these problems belong to Bitcoin. They belong to the monetary system itself.
This Isn’t a Pivot. It’s Exhaustion.
What we are seeing is not a clean policy pivot. It is structural exhaustion. The tools that guided markets since 2008 no longer carry the same power.
The elasticity that held the system together is gone. When that breaks, assets connected to global liquidity – including Bitcoin – move violently.
Bitcoin (BTC) didn’t fail its test. The monetary order did.
DECEMBER 1, 2025: THE DAY THE MONETARY ORDER BROKE
— Shanaka Anslem Perera ⚡ (@shanaka86) December 1, 2025
The Federal Reserve just terminated Quantitative Tightening.
Not because it succeeded. Because it had no choice.
Balance sheet frozen at $6.57 trillion. The largest liquidity withdrawal in central banking history ends after… pic.twitter.com/CfCb7asIcd
What Comes Next
The takeaway is simple. The crash came from a combination of rising yields, thin liquidity, high leverage, and a monetary system reaching its limits.
The Bitcoin price reacted to the shock, but its long-term thesis hasn’t changed. The next phase of the market will be built on new rules, not the ones we have lived with since the last financial crisis.
In moments like this, the best position is the simplest one: avoid leverage, watch liquidity, and understand that macro drives everything. The system is shifting. Bitcoin is responding.