December Downturn: Bitcoin Below 87K as DeFi Exploits and Japan Yield Shock Trigger 636M in Liquidations

Chain Reaction by Capital Copilot · Dec 1, 2025 · 3m · transcript

December 1st, 2025 brings significant turbulence to crypto markets. Bitcoin fell over five percent to eighty-seven thousand dollars, Ethereum dropped five percent, and XRP declined seven percent as multiple catalysts combined to trigger six hundred thirty-six million dollars in liquidations. The sell-off was sparked by a nine million dollar exploit at Yearn Finance's yETH liquidity pool, compounded by Japanese government bond yields hitting seventeen-year highs and raising Bank of Japan rate hike expectations. Meanwhile, Tether faces fresh scrutiny after S&P downgraded USDT to its weakest…