Analyst: Regulatory and Institutional Tailwinds Drive Crypto Market Rebound, But Market Sentiment Remains Cautious

By: theblockbeats.news|2025/12/03 06:16:00
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BlockBeats News, December 3rd, CoinDesk analyst Shaurya Malwa stated that despite a rebound in the cryptocurrency market, market sentiment remains cautious. Earlier this week, Bitcoin's sell-off, accompanied by a weekend liquidity crunch and spillover from macro market jitters, amplified price volatility. The broader market is still digesting concerns related to corporate balance sheets, including a sharp pullback in Strategy-related ETFs and pending MSCI methodological reviews, factors that have dampened risk appetite in recent trading.

Tuesday's rally was driven by several incremental catalysts. U.S. 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 toward regulatory clarity after months of policy stagnation. In addition, Vanguard Group announced this week that it will allow the trading of cryptocurrency ETFs and mutual funds on its platform, boosting market sentiment after prolonged outflows of long-term funds.

However, from the structure of the rebound, it is primarily a relief rally rather than a trend reversal. Market depth remains uneven, with various 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.

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