There are multiple factors behind the weakening of the market in December. First, the latest financial stability report released by the People's Bank of China emphasized Hong Kong's regulation of cryptocurrencies, which brought considerable pressure to the market. Secondly, regulators in various countries have stepped up their supervision of crypto assets, fearing that crypto funds may have spillover risks to the stability of the financial system, which further hit market confidence.

On the technical side, Bitcoin has risen for three consecutive months after experiencing a large increase in volume in November, and the technical correction in December is seen as a natural correction of its price by the market. In addition, there were many hacker attacks and security vulnerabilities in some crypto projects in December, which made investors more worried about the security of crypto assets.

Finally, as the end of the year approaches, market trading volume gradually decreases and liquidity tends to be tight, resulting in a weaker market. In general, market sentiment in December was affected by multiple factors such as regulation, technology and security. Investors need to remain vigilant and respond rationally.