Bitcoin’s Stumble Amidst Macroeconomic Crosswinds: A Pause or a Pivot?

As December unfolds, a palpable risk-off sentiment has gripped Wall Street, casting a shadow over risk assets, including Bitcoin. The simultaneous rise in Treasury yields and a stumble in the flagship cryptocurrency underscores the fragile equilibrium of the current market rally. With key economic indicators flashing warning signs and the Federal Reserve's impending policy decision looming large, the digital asset market finds itself at a critical juncture, navigating the complex interplay between traditional finance pressures and its own inherent volatility. This analysis delves into the macroeconomic forces at play and their implications for Bitcoin's trajectory in the coming weeks.

Wall Street Retreats as Yields Climb and Bitcoin Stumbles

December opened with a risk-off mood across Wall Street. Equities slipped as Treasury yields rose, pressuring bond-proxy sectors like real estate and utilities. The MOVE index underscored the fragility of the recent rally.

ISM manufacturing data revealed a ninth month of contraction, with orders weakening amid tariff pressures. All eyes now turn to the Fed’s December 10 meeting, where an 85%-priced rate cut may prove insufficient to counter slowing demand and global yield surges.

Bitcoin’s 6% plunge below $85,000 exacerbated the selloff, dragging crypto-exposed stocks like Coinbase and Bitfarms down 5-6%. Meanwhile, BOJ Governor Ueda’s hawkish hints triggered bond selloffs worldwide, compounding the pressure on risk assets.

Crypto Inflows Rebound to $1.07 Billion as Rate-Cut Signals Lift Market Sentiment

Crypto investment products saw a sharp reversal last week, with inflows hitting $1.07 billion after a month of sustained outflows. The shift follows comments from Federal Open Market Committee member John Williams, who noted that monetary conditions remain restrictive—fueling speculation of a December rate cut.

Bitcoin led the resurgence as capital rotated back into major digital assets. The rebound marks the strongest weekly inflow since early November, contrasting sharply with the $1.94 billion outflow recorded the prior week. Trading volumes dipped to $24 billion during Thanksgiving holiday lulls, down from $56 billion previously.

Market participants interpreted Williams' remarks as telegraphing a potential Fed policy pivot. The crypto ETF sector, which had bled $5.7 billion over four weeks, now shows signs of renewed institutional confidence. All eyes remain on macroeconomic indicators as traders position for looser monetary conditions.

Cango Inc. Posts 60.6% Revenue Surge Fueled by Bitcoin Mining Expansion

Cango Inc. (NYSE: CANG) reported unaudited Q3 2025 revenues of $224.6 million, a 60.6% quarter-over-quarter increase, driven primarily by its Bitcoin mining operations. The segment contributed $220.9 million, with 1,930.8 BTC mined—a 37.5% output jump from Q2. Daily production averaged 21 BTC.

Operational efficiency reached 90% as hashrate climbed from 40.91 EH/s in July to 46.09 EH/s by October. The company’s all-in mining cost stood at $99,383 per BTC, while maintaining a lean $81,072 base cost excluding hardware depreciation.

With 5,810 BTC mined since entering the sector, Cango has transitioned from its ADR program to a direct NYSE listing, signaling confidence in its capital structure. Adjusted EBITDA hit $80.1 million for the quarter.

Bitcoin Miners Face Worst Profitability Crisis in Network History

Bitcoin miners are grappling with unprecedented financial strain as revenue per unit of computing power plunges below production costs. The current revenue of $35/PH/s now trails the $44/PH/s median all-in cost for major mining operators, marking the deepest profitability crunch in Bitcoin's history.

Network hashrate approaching 1.1 zettahashes per second has intensified competition for block rewards, compounding pressures from Bitcoin's 20% price decline since November. Mining equipment payback periods now exceed 1,000 days—stretching beyond the next halving event in 2028 when block rewards will halve to 1.5625 BTC.

The deteriorating economics threaten to force smaller operators into capitulation. Distressed miners may liquidate bitcoin holdings to sustain operations, potentially creating downward pressure on markets. Bitcoin briefly tumbled to $85,800 this week before recovering to $87,000, erasing $140 billion from crypto's total market cap.

Strategy Inc. Shifts Bitcoin Strategy Amid Market Constraints

Strategy Inc., the corporate Bitcoin vault formerly known as MicroStrategy, has hit a cyclical wall in its rapid growth mechanics. The firm revealed a $1.44 billion cash reserve priority and outlined parameters for potential Bitcoin sales, marking a pragmatic shift in treasury management.

The move comes as Strategy's stock trades at a discount to the net asset value of its Bitcoin holdings, stalling its premium-driven leverage loop. Historically, the company used high equity premiums to issue shares and buy Bitcoin, creating accretive value for investors. Now, with shares trading at 1.15 mNAV, further equity issuance risks becoming dilutive if the ratio falls below 1.0.

Strategy's Bitcoin purchases have slowed significantly, with only 130 BTC acquired between November 17 and 30 for $11.7 million—a fraction of its usual volume. The new contingency plan, triggered by a 15% dip, underscores the firm's adaptive approach to current market conditions.

Bitcoin's Bearish Signals Emerge as Support Levels Weaken

Bitcoin's bullish momentum shows signs of fatigue as technical indicators flash warning signals. The cryptocurrency traded at $86,736.05 on December 2, 2025, with its inability to hold key support levels sparking concerns among traders.

Technical analysis reveals troubling divergences: 25 indicators now point downward while only six remain bullish. The $88,000 support zone - previously considered robust - appears vulnerable, with potential for further declines to $84,000-$82,000 if current levels fail.

Market participants closely monitor moving averages and RSI trends, both suggesting growing selling pressure. The weakening technical picture coincides with shifting attention toward alternative opportunities like Bitcoin Hyper, as traders seek upside potential elsewhere.