December 2nd: Bitcoin briefly dropped below $84,000, experiencing a more than 8% decrease within 24 hours. The total crypto market capitalization fell below $3 trillion, with a total of $974 million liquidated across the entire network in the past 24 hours. Of this amount, long positions liquidated amounted to $851 million, leading to over 260,000 forced liquidations. In response to this crypto market crash, Arthur Hayes posted, citing the reason as the Bank of Japan hinting at a possible interest rate hike in December. The USD to JPY exchange rate fluctuated in the 155-160 range, indicating a hawkish stance by the Bank of Japan. Maclane Wilkison, the co-founder of Threshold Network, stated, "The Bank of Japan's signal of an impending rate hike has tightened global liquidity expectations and shaken risk assets."Additionally, Strategy's CEO, Phong Le, mentioned that they would only consider selling Bitcoin when the company's stock price falls below net asset value and they are unable to obtain new funds. Market concerns arose due to Bitcoin's price weakening, potentially leading Strategy to be forced to sell due to a lack of cash to pay dividends. In response, Strategy issued an announcement last night declaring the establishment of a $1.44 billion USD reserve fund specifically designated for paying preferred stock dividends and existing debt interest. The funds were derived from the proceeds of selling Class A common stock based on the market issuance plan. The current plan aims to maintain a reserve size covering at least 12 months of dividend payment requirements, with the ultimate goal of having a buffer fund pool covering 24 months or more of dividend payments.Previously, S&P Global Ratings downgraded Tether's USDT stability rating from "Restricted" to "Weak" and warned that a Bitcoin price decline could lead to undercollateralization risks for the stablecoin. Arthur Hayes posted, mentioning that a roughly 30% drop in the "gold + BTC position" would wipe out their equity capital, potentially rendering USDT theoretically insolvent. In response to this, Tether CEO Paolo Ardoino countered the "Tether FUD" by stating that the group's equity is close to $30 billion USD. S&P's analysis did not consider additional group equity nor did it account for the approximately $500 million monthly basic income that only U.S. Treasury yield could bring.Boris Revsin, General Partner and Managing Director at Tribe Capital, described this as a "leverage cleanse" that triggered a chain reaction throughout the market. Additionally, the macro environment has become less favorable: short-term rate cut expectations have diminished, inflation has remained stubborn, the job market has weakened, geopolitical risks have increased, and consumer pressures are rising. These factors have collectively contributed to the weak performance of most risk assets over the past two months. William Stern, the founder of Cardiff, stated, "With just over a week until the Fed meeting and unclear inflation data, institutional investors are actively reducing risk. They are reluctant to hold assets with high volatility, such as Bitcoin, to avoid any hawkish remarks from Powell."