Core Insights - Bitcoin's recent selloff is increasingly concentrated during U.S. trading hours, indicating a shift towards behaving like a high-beta tech asset rather than a traditional cryptocurrency [1][2] - The cumulative returns for Bitcoin during U.S. hours have declined nearly 30%, while Asian sessions remain largely flat and European sessions show modest losses [1][2] Market Behavior - Throughout November, Bitcoin stabilizes during Asian trading hours, experiences slight declines during European sessions, and absorbs most losses once U.S. equity markets open [2][5] - This pattern reflects stress in megacap tech stocks, which are facing valuation pressures due to concerns about the Federal Reserve's monetary policy and heavy AI capital expenditures [2][3] Correlation with Tech Stocks - Bitcoin has a high correlation with U.S. tech stocks, both being risk assets influenced by U.S. monetary policy expectations and retail trader involvement [3] - Recent market volatility is driven by fears that the Federal Reserve may not cut rates in December, impacting both tech stocks and Bitcoin [3] Liquidity and Trading Dynamics - Funds treating Bitcoin as a liquidity-sensitive risk asset are influencing the current market movement, with ETF inflows stalling and net outflows observed in larger spot products during U.S. sessions [4] - A decline in CME futures open interest indicates deleveraging during U.S. trading hours, which are characterized by the deepest liquidity for both spot and derivatives [4] Regional Divergence - The current regional divergence in Bitcoin selling pressure is notable compared to previous market corrections, where selling was more evenly distributed across time zones [5] - Unless there is stabilization in tech stocks or a return of ETF flows, Bitcoin will likely continue to be influenced by U.S. trading hours, setting the tone for the broader market [5]