Analyst: This BTC pullback is healthy, fundamentals remain solid
Ryan McMillin, the Chief Investment Officer of Merkle Tree Capital in Australia, pointed out that the recent price drop of Bitcoin is just a temporary adjustment, and the fundamentals remain solid.
This pullback is the result of multiple factors, including significant profit-taking by long-term holders, a net outflow from spot Bitcoin ETFs, and increasing global macroeconomic risks. McMillin emphasized that the market structure now is completely different from before, as liquidity from ETFs and institutions has absorbed most of the selling pressure, so this pullback should be seen as a healthy correction phase rather than the beginning of a bear market.
On-chain data shows that although long-term holders are selling, the inflow of stablecoins remains strong, indicating that new funds are buying on dips. Market sentiment is extremely fearful, with an index of only 14, which is usually a signal for contrarian traders to look for a bottom.
Hong Kong Launches Tokenized Deposit Pilot, RWA Narrative Set to Take Off
Hong Kong has officially launched a real-time pilot program for tokenized deposits and digital asset settlement. This is a significant advancement based on the sandbox experiment that began last August, aiming to integrate tokenized deposits into traditional banking operations using the digital Hong Kong dollar.
Hong Kong, as a major global financial center, has seen regulatory agencies shift from a sandbox approach to real-time settlement, which is a significant boon for RWA and the tokenization narrative, paving the way for the large-scale application of compliant digital assets. The pilot program will continue until 2026, initially focusing on tokenized money market funds and real-time liquidity management.
This progress will attract more traditional financial institutions to enter the Web3 field, benefiting local compliant concept coins and the RWA track in Hong Kong, such as CFX, MASK, ONDO, and MKR.