Recently, Bitcoin has once again "plummeted," is the chill in the crypto market more profound? It has fallen below $86,000 for the first time in two weeks, hovering around $85,500, and today it has returned to $87,000, not far from this year's low of $74,400 in April. Compared to the historical high of $126,000 at the beginning of October, this pullback is a full 30%. How optimistic can investors be?
Why can't it rebound?
Analysts bluntly state that Bitcoin is sliding towards the lower range (between $85,000 and $94,000). Even if there is a small rebound, it may be sold off by those "retail investors" who bought at high prices — they are eager to cut losses and recover funds. Bohan Jiang, a trader at FalconX, says that market interest is currently low, trading volume is small, and there is little enthusiasm.
More critically, Bitcoin has become "disconnected" from other risk assets. While others rebound, it continues to decline. Even though the Federal Reserve lowered interest rates last week, liquidity in the crypto space is still tight, and risk appetite has shrunk. Chris Newhouse, the research director at Ergonia, analyzes that this time it is not a massive liquidation but rather holders actively reducing positions; the selling pressure is steady but persistent — the leveraged players have already been washed out, and now it is genuine cash outflow.
There are always "big players" bottom-fishing
Of course, not everyone is panicking. Michael Saylor of MicroStrategy was again bold this Monday, spending nearly $1 billion on Bitcoin for the second consecutive week! Most of the funds came from selling its own stock, becoming the "leader" in digital currency custody. However, there is also a lot of criticism: selling too many stocks dilutes shareholder equity, and premiums have to be discounted, leaving everyone anxious.
Ultimately, this market is like this — it is volatile but opportunities are hidden within. In the short term, selling pressure is considerable, but long-term players like Saylor are still increasing their positions. What about you? Do you think it's time to add to your positions or wait a bit longer?
Pay attention to these signals, and don't act impulsively when investing. If you like my sharing, remember to follow me~
