On the first day of December, Bitcoin experienced a waterfall washout, completely losing the gains from last week's warming trend in just a few hours.

The main reason is the strong statements made by the Bank of Japan's governor on the macro front, which heightened market expectations for interest rate hikes, causing U.S. stock index futures to drop, and naturally, the cryptocurrency market followed suit.

If the yen really raises interest rates, the previously popular strategy of borrowing yen to buy dollars for arbitrage could be disrupted, affecting global liquidity. From a price perspective, the main issue is that the monthly chart failed to break through a key position by the end of November, and coupled with the fact that U.S. market makers were on break last week, the market's trading depth was insufficient, so even a slight selling pressure caused the price to plummet.

This month is expected to be the last discussion point for interest rate cuts this year. From December to February next year, there might be a pause in rate cuts, meaning that after this month, there will be no expectations for rate cuts for at least two months. If there are no hot topics to attract funds during this period, it will be very difficult to maintain the warming trend.

This week there are also some data points, including the ADP employment data on Wednesday. The worse this data is, the more favorable it is for interest rate cut expectations. The impact of Friday's PCE price data on the market has diminished, along with the PMI data and Powell's speech, with the focus still on Powell's remarks.