On December 5th, European regulators initiated a comprehensive review of crypto assets, combined with the Fed's interest rate cut expectations being postponed again and the strong rise of the dollar, leading to an increase in market risk aversion. Meanwhile, profit-taking by whales triggered a chain reaction of leveraged liquidations, shifting the sentiment in the cryptocurrency market to cautious. Mainstream cryptocurrencies like Bitcoin faced significant selling pressure, with prices repeatedly breaching key support levels. Technical indicators show that short-term bearish momentum is strong, with the downtrend continuing to dominate, and market panic has not fully released, with no signs of relief in the pullback situation. Analysts point out that regulatory uncertainty combined with changes in liquidity expectations has become the core suppressive factor for short-term market risk appetite.
Large financial institutions in the United States are accelerating their layout in the crypto field. Several leading banks and brokerages have opened the recommendation rights for crypto ETF products, allowing financial advisors to allocate Bitcoin and other crypto asset-related ETFs for clients. Data shows that the proportion of institutional funds has rapidly risen from 15% a few months ago to 28%, becoming an important support force in the market. Institutions generally recommend that investors keep the allocation of crypto assets within 4% of total assets, and those with lower risk appetite can reduce it to 1%, in order to strictly manage risk exposure.
Currently, the crypto market presents a complex pattern of 'short-term pressure and long-term opportunities coexist': European reviews, monetary policy expectations, and fund movements have triggered a phase adjustment, while breakthroughs in U.S. regulation and institutional participation inject new momentum for compliant development in the industry. The market needs to be vigilant about short-term volatility risks, but the long-term logic still focuses on the incremental capital potential brought by the enhancement of regulatory certainty. Investors are advised to maintain cautious optimism, align with the trend, and prioritize attention on compliant tracks and fundamentally solid crypto assets, to grasp the long-term value of the industry from a strategic perspective.
Operational Strategy
For Bitcoin, it is recommended to pay attention to the short position layout in the range of 90000-89500, targeting around 88000.
For Ethereum, consider short positions in the range of 3060-3030, with targets around 2950.
