Bitcoin plunged through $83,000 last night, and Ether and BNB were not spared either. On the surface, it seems that the news of the Bank of Japan potentially raising interest rates is to blame, but the underlying logic that caused the market crash may be deeper than most people think.

A few days ago, Musk fired again on a podcast, this time discussing the concept of "energy currency." His original words roughly meant that Bitcoin is essentially an energy-based currency system—its scarcity is based on computing power consumption and electricity input, which is completely different from fiat currency that can be printed at will. It sounds quite uplifting, but guess what? Before his words had even settled, BTC took an 8% plunge in the early session, heading straight for the $84,000 range.

The market is currently facing dual pressures. The probability of the Bank of Japan raising interest rates in December has surged to 80%, which means that nearly $19 trillion in carry trade funds globally may need to withdraw quickly. On the other hand, while Musk has highlighted the energy nature of Bitcoin, he has also exposed its sensitivity to fluctuations in energy costs—this is precisely its Achilles' heel of volatility. The entire market now resembles a startled bird.

Just look at the data to see how brutal it is: Bitcoin has already dropped more than 20% this month, and ETF funds are still flowing out; BNB has fallen below a key support level, and many on-chain projects are about to break even. But the most dangerous thing might be the liquidity trap — on December 19, just before Christmas, the market is already lacking money and confidence, and any slight disturbance could trigger a chain reaction.

But don't just focus on the crash. Musk actually dropped a hint: he said that the future development of AI and robots might make traditional currencies unnecessary. What does this imply? The combination of blockchain and AI may be the starting point for the next narrative. Moreover, looking back at the interest rate hike in Japan in 2024, the impact was indeed severe, but three months later, Bitcoin hit a new high, and short-term fluctuations do not represent long-term trends.

The key nodes at the moment are the Bank of Japan meeting in December and the Federal Reserve's dot plot. Keep your bullets ready, stay calm, and only those who survive in the market are qualified to buy the dip.

BTC6.52%

ETH8.87%

BNB7.27%

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CryingOldWallet

· 12-02 09:54

Every time Musk opens his mouth, the coin drops; this guy is really a double-edged sword. Wait, the theory of energy currency sounds pretty painful, but there aren't that many bullets left to buy the dip. There are a lot of projects that have fallen below the issue price, and the liquidity trap is truly deadly. This wave of sell with bearish market before Christmas Eve feels like it will never end. 18 months ago, Japan raised interest rates and it dropped like this, but later it reached a new high; the mindset needs to be stable.

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ChainSpy

· 12-02 09:54

Musk talks about energy currency, then turns around and BTC just falls big, this slap to the face is quite loud. --- It's the Bank of Japan again, and it's the interest rate arbitrage funds, the old script with a new performance, there's really no suspense at all. --- The days leading up to December 19th were truly hellish, I'm really scared of the term liquidity trap. --- Fall below the issue price, fall below the issue price, the screen is full of falling below the issue price, if only I had left some cash, I would have made a profit. --- Three months to turn things around, huh? Well, I'll just try to survive these three months first. --- The energy sensitivity is exposed, it feels like the myth of BTC isn't so unbreakable after all. --- AI plus Blockchain? Wake up, let's survive December first before talking about the next narrative. --- The continuous outflow of ETF is what tires me the most, even institutions are starting to run away. --- Is Musk's operation this time intentional? Talking about favourable information and then dumping, it's a textbook case of playing people for suckers. --- Save the bullet, this phrase really struck a chord with me, right now it's all about patience.

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LiquidityOracle

· 12-02 09:54

When Musk opens his mouth, he can cause a dumping, this guy is really something. --- We should understand that short-term pain is really trivial, those who buy the dip are the winners. --- Energy currency? Sounds high-end, but it still can't escape the cycle of fate. --- The move by the Bank of Japan has directly scared away global carry trade funds, who can blame them? --- So what if BTC breaks 83,000, Bitcoin has also fallen like this at this time last year. --- Liquidity traps are the most terrifying; without liquidity, everything is just talk. --- Musk talks big every day, I just want to see how many months it can influence the trend. --- This time is different? Last time they also said it was different, but three months later it was still a new high. --- Save the bullets for the December Central Bank meeting, the real test is still to come. --- This article explains the big dump clearly, but how to operate next still needs to be thought out on your own.

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SeasonedInvestor

· 12-02 09:53

Elon Musk just loves to talk nonsense. He shouts about energy currencies, and then the coin price crashes, truly a Reverse Indicator. --- As soon as the Bank of Japan raises interest rates, $19 trillion will run away; what does our small market even count for? --- Rather than listening to stories, it's better to look at Liquidity; that's the real killer. At this critical moment in December, the saying about being a startled bird is just perfect. --- A 20% fall isn't really much; the key is not to let your mentality collapse. The opportunities to buy the dip are all found in this panic. --- Blockchain plus AI for the next narrative? Let's wait until after December to boast; right now, it's all about Unfavourable Information expectations. --- After the Bank of Japan raised interest rates last year, it hit a new high three months later. Will it be the same this time? Not necessarily, the environment has changed. --- Save your bullets, I agree with this statement, but very few actually survive to buy the dip. --- BNB has broken the support level, and on-chain projects are about to fall below the issue price; this is the most heart-wrenching signal. --- Is Elon Musk lying in ambush? I see it as just passing the burden and letting retail investors catch a falling knife. --- The sensitivity of energy costs is this weak point; he stabbed himself with a knife, impressive.

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GraphGuru

· 12-02 09:53

When Musk opens his mouth about energy currency theory, Bitcoin is bound to crash; this rhythm is truly incredible. The Central Bank of Japan is raising interest rates, with 19 trillion in interest trap funds running away; this wave is indeed ruthless. Don't just look at the fall; three months later, it will be a new high again. Those who are greedy now are dying on the beach. The part about the Liquidity Trap is spot on; who dares to act on Christmas Eve? Musk is lying in ambush with AI combined with Blockchain; the next narrative starting point is right here. Save the bullets; December's Central Bank of Japan meeting will be the real watershed.

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