#美国证券交易委员会推进数字资产监管框架创新 What’s really going on with the crypto market at the end of the year

Recently, the market sentiment has been a bit subdued. Liquidity is tight, and at this pace, a gradual decline is likely.

While the Federal Reserve is cutting rates and restarting treasury bond purchases, which should theoretically ease liquidity pressures, the problem is—approaching year-end holidays, traders aren’t much interested in trading, and trading volume has significantly declined. It’s like a mall having a sale, but shoppers are busy with festivals; no matter how good the discounts, they can’t boost buying interest. This has drained the market’s momentum for a rebound.

Insights can also be seen from the options market. By the end of December, holdings of BTC and ETH are highly concentrated, and investor sentiment is clearly cautious—everyone is buying put options to hedge risks. This fully reflects the market’s anxiety: fear of a decline, hence preemptive protection.

Although sudden positive news could theoretically change the situation, the overall market atmosphere remains quite weak. Based on comprehensive analysis, the probability is higher that the market will continue to trend downward. In this environment, traders should stay calm, avoid panic, and respond to volatility rationally.