BlockBeats News, December 3rd, CoinDesk analyst Shaurya Malwa stated that despite a rebound in the crypto market, market sentiment remains cautious. Earlier this week, Bitcoin’s previous sell-off, accompanied by reduced weekend liquidity and spillover anxiety from the macro market, amplified price volatility. The broader market is still digesting concerns related to corporate balance sheets, including the sharp pullback of Strategy-related ETFs and the pending MSCI methodology review, factors that have constrained risk appetite in recent trading.
Tuesday’s rally was driven by several incremental catalysts. US SEC Chairman Paul Atkins stated that the SEC plans to unveil a proposed digital asset company “innovation exemption” framework, seen by the market as a step towards regulatory clarity after months of policy stagnation. In addition, Vanguard Group announced this week that it will allow trading of crypto asset ETFs and mutual funds on its platform, boosting market sentiment after long-term outflows.
However, from the structure of the rebound, it is primarily a relief rally rather than a trend change. Market depth remains uneven, with several mainstream tokens recovering from multi-week lows. The next test is whether spot demand can sustain this round of rebound once the derivatives market recovers from the liquidation cycle.
