Analysts: Regulatory and institutional support factors have driven a rebound in the crypto market, but market sentiment remains cautious.

On December 3rd, CoinDesk analyst Shaurya Malwa stated that despite the crypto market rebound, market sentiment remains cautious. Earlier this week, Bitcoin's sell-off, coupled with weekend liquidity constraints and spillover effects from macroeconomic tensions, amplified price volatility. The broader market is still digesting concerns related to corporate balance sheets, including a sharp pullback in strategy-related ETFs and the pending MSCI methodology review, factors that have dampened risk appetite in recent trading. Tuesday's gains were driven by several incremental catalysts. SEC Chairman Paul Atkins stated that the SEC plans to release a proposed "innovation exemption" framework for digital asset companies, seen by the market as a step towards regulatory clarity after months of stalled policymaking. Furthermore, Vanguard's announcement this week that it will allow ETFs and mutual funds trading crypto assets on its platform also boosted market sentiment after long-term outflows. However, structurally, the rebound appears to be primarily a reaction to easing pressure rather than a trend reversal. Market depth remains uneven, with several major tokens recovering from multi-week lows. The next test is whether spot demand can support this rebound once the derivatives market recovers from the liquidation cycle.