Bitcoin tumbled over 8% alongside crypto-related stocks, hitting $84,000 on Monday due to concerns about Japanese interest rates. A similar drop in 2024 saw a 18% decline in Bitcoin’s value. Despite this, the Federal Reserve may cut rates in December, offering optimism amid market volatility. Bitcoin exchange traded funds saw $3.5 billion in outflows in November, with the token down over 30% from its October peak.

Strategy has established a $1.44 billion reserve to cover dividends and debt payments. It added 130 Bitcoin tokens last week, bringing total holdings to 650,000. Concerns remain about Strategy’s ability to cover its convertible debt if Bitcoin falls below $12,700. Despite this, analysts believe multiple macro shocks are needed for such a drastic decline in Bitcoin’s value.

Strategy stock hit a 52-week low as the company projected yearly net income ranging from a loss of $5.5 billion to a profit of $6.3 billion. Analysts believe concerns over Strategy’s future are exaggerated, noting the unlikely scenario of Bitcoin falling 86%. Speculative retail investors have been replaced by institutional buyers, reducing the likelihood of a significant price drop.

Read more at Yahoo Finance: Bitcoin slides on ‘weak’ sentiment, Strategy, Coinbase among crypto stocks hit