Bitcoin has similarly depreciated against the US dollar over the same time period, with a significant dip occuring on December 4th, where Bitcoin dropped close to $10,000 (~16%) in about the span of an hour, before slightly recovering and closing the day at an approximately 8% drawdown.

The dip likely resulted from a confluence of factors. Inflation and tapering fears in the US had already emerged months prior, and further accentuated by recent pronouncements from the Fed that the current inflation levels may not be ‘transitory’. While within the cryptoverse, there were also growing talks of the market already at the top. The announcement of the new Omicron variant added another factor adding to increased uncertainty, likely accelerating risk-off behaviour from investors. 

Flash crashes similar to what happened during the May crash and on December 4 could also likely be attributed to cascading liquidations of the extensive leveraged positions in the markets, making regular shake-outs more violent