Bitcoin experienced a significant downturn after Bank of Japan Governor Kazuo Ueda's hawkish speech on December 1, which hinted at potential interest rate hikes. This announcement disrupted the Japanese carry trade, a strategy where investors borrowed yen at near-zero interest rates to invest in high-risk assets like Bitcoin and U.S. equities. As Japanese rates are expected to rise, investors began unwinding these positions, triggering a sell-off in risk assets. Additionally, Japan's move to sell U.S. Treasuries, of which it holds $1.15 trillion, to repatriate capital has pushed U.S. yields higher, increasing global borrowing costs. Bitcoin, known for its volatility and lack of data support, was one of the first assets to be sold off in this environment.