Why did the price of Bitcoin plummet and then surge last night, creating a deep V?
It's actually the flow of money causing the stir. This wave of Bitcoin increased from 85,000, mainly relying on funds from the Web2 industry. Now, everyone in the Web3 circle is very cautious, making these external funds particularly important.
Last night, the price of U.S. government bonds rose, and the three major U.S. stock indices also increased, attracting some hot money back. Around 4 AM, Bitcoin was heavily sold off. But by 7 AM, the price gradually rose back up. Because the U.S. economic data isn't great, U.S. stocks can't remain strong indefinitely, and the amount of hot money in these back-and-forth movements isn't large, thus having little impact on the long-term trend of Bitcoin.
