TechFlow news, December 3: Matrixport released its daily analysis indicating that Bitcoin recently experienced sharp volatility, briefly falling below $84,000 with a single-day decline exceeding 6%. The drop was primarily driven by rising expectations of a Bank of Japan rate hike, which boosted the yen and forced liquidation of some yen carry trades, combined with nearly $1 billion worth of leveraged positions being forcibly liquidated, amplifying market fluctuations. Cryptocurrency-related stocks such as MicroStrategy fell approximately 12% at one point.
In November, spot Bitcoin ETFs saw cumulative net outflows of about $3.5 billion. Additionally, China's regulatory authorities issued warnings regarding cryptocurrency risks, further dampening market risk appetite.
Subsequently, the market stabilized and recovered. U.S. banks began allowing financial advisors to recommend up to 4% Bitcoin allocation for high-net-worth clients, while Vanguard also started offering Bitcoin-related exposure to its customers. Currently, Bitcoin has reclaimed the $90,000 level. From a technical perspective, it has formed a structure of higher lows, indicating a short-term bullish trend.
