Bitcoin's recent fall has been quite severe. Just yesterday, it was hovering around 90,000 dollars during the Asian session, and then it plummeted directly to just over 83K at night, with nearly 1 billion dollars in liquidations within 24 hours. The trigger for this market fluctuation may be related to the Central Bank of Japan — once the interest rate hike expectations emerged, the pressure to close positions in yen arbitrage trading came, and encryption assets were the first to be affected.

The US stock market is also not calm. The December opening was met with manufacturing data holding it back: the November ISM Manufacturing PMI dropped to 48.2, marking the largest decline in four months, with weak orders being the main reason. However, there are several important data points to watch this week — Friday's inflation numbers, the ADP employment report, and the preliminary consumer confidence index, all of which will impact the Federal Reserve's interest rate cut decision next week.

An analyst from UBS made an interesting comment: Historically, when the economy does not go into recession and the central bank is injecting liquidity, the stock market performs the best. The probability of the Federal Reserve cutting interest rates is indeed increasing. She also mentioned that the current weakness in the U.S. economy may only be a short-term phenomenon, and the global growth pace should accelerate again by 2026.

In the short term, market sentiment is still being driven by the actions of the Central Bank of Japan and the Federal Reserve. In this kind of macro narrative-driven market, fluctuations are certainly inevitable.