Bitcoin Dips Below $84K as Crypto Market Sinks Under $3 Trillion on BoJ Rate-Hike Signals and Liquidity Crunch

Bitcoin briefly dipped below $84,000 as risk-off sentiment rose and the crypto market cap slipped under $3 trillion. About $974 million in liquidations swept the network, skewed toward longs.

Long liquidations totaled around $851 million, with over 260,000 traders affected. The move followed hawkish signals from the Bank of Japan, as USD/JPY traded near the 155–160 range.

Market participants warn that persistent weakness could force issuers to reduce exposure. Phong Le of Strategy said selling would occur only if NAV breaches and funding dries up.

S&P Global cut USDT stability rating to Weak, citing potential under-collateralization if Bitcoin declines. Tether CEO Paolo Ardoino rebutted FUD, noting group equity near $30 billion.

Analysts describe a leverage washout amid a softer macro backdrop—lower rate-cut expectations, persistent inflation, a softer jobs market, and rising geopolitical risk—guiding cautious positioning ahead of the Federal Reserve meeting.