According to CNBC, Bitcoin fell more than 5% to dip back below the key $90,000 level, leading a broader market retreat to start December. Stock futures followed, with Dow futures down over 200 points and S&P 500 and Nasdaq-100 futures falling 0.7% and 0.9%, respectively. Other indicators confirmed a risk-off mood, with gold futures rising about 1% to nearly $4,300 an ounce and the Cboe Volatility Index (VIX) climbing to around 18. Analyst Adam Crisafulli of Vital Knowledge cited the crypto dive, hints of a Bank of Japan rate hike, and disappointing China PMI data as contributing pressures. This comes after a volatile November where the S&P 500 still managed a small monthly gain and a strong 3.7% rally last week.
December Roller Coaster
So much for a quiet Santa Claus rally, right? Here’s the thing: this kind of whiplash is becoming the norm. We just had a huge week to close November, and now we’re giving a big chunk of it back on day one of December. It feels like the market can’t decide if it wants to celebrate the end of the year or run for the hills. And crypto, as usual, is amplifying the moves. Bitcoin breaking below $90k isn’t just a number—it’s a psychological signal that gets every momentum trader hitting the sell button on everything else.
The Bigger Picture
Look, one bad morning doesn’t wreck a seasonal trend. The data says December is historically the third-best month for the S&P 500, averaging over a 1% gain. But this start is a stark reminder that “average” doesn’t mean “steady.” The triggers today are a global cocktail: Japan’s potential policy shift, more signs of a sluggish Chinese economy, and, of course, crypto’s inherent volatility. It’s a test. Is the underlying bullish sentiment from last week strong enough to absorb this? Or are we just setting up for more of the choppy, AI-led trading that defined November?
What to Watch Next
Basically, the fear gauge (the VIX) is up, but it’s not screaming panic yet. The simultaneous rise in gold and drop in Bitcoin is a classic risk-off rotation. The question is duration. Does this flush out some weak hands and set up for a rebound, or does it snowball as more year-end profit-taking kicks in? I think traders will be watching to see if stocks can decouple from crypto’s drama. If the S&P can hold key levels even while Bitcoin wobbles, that’s a sign of underlying strength. If not, buckle up. That historically strong December might need a few more days to get its engine started.
