Bitcoin has recently experienced severe fluctuations, resulting in the evaporation of billions of dollars in assets. The market has engaged in discussions surrounding this volatility, with significant divergence in opinions. The specific analysis is as follows:
Supporting the viewpoint of a 'healthy reset'
Market clearing and structural optimization
A large number of sell orders in the perpetual swap market triggered long liquidations, with open contracts decreasing by over ten billion dollars from a peak of 80 billion dollars. Weak-handed investors have exited the market, completing a 'detox' and laying the foundation for subsequent market movements.
On-chain indicators release positive signals with actual market value reaching a new high: 93.51 billion dollars, indicating that holder confidence remains strong, and there has been no panic selling due to short-term fluctuations.
Market sentiment is warming: the Fear and Greed Index rebounded from the panic zone (46) to 55, approaching the 'Greed' zone; the number of new Bitcoin addresses has turned positive, and new buyers entering the market are driving FOMO sentiment.
Support from off-exchange funds
On June 4, 10,000 BTC were traded off-exchange at a price of 104,700 dollars per coin, indicating strong support in the spot market and being regarded as one of the bottom signals.
Although BTC rebounded by 5.2% in the short term, it only recouped half of its losses, and historically, Bitcoin has shown extreme volatility, making it difficult to confirm long-term trends based on a single indicator.
Macroeconomic and regulatory risks remain present, with expectations for Federal Reserve interest rate cuts and U.S. economic data still unclear, which may exacerbate market fluctuations. Uncertainties exist regarding global cryptocurrency regulatory policies (such as the U.S. SEC's stance on ETFs), where tightening regulations could reverse market trends.
Historically, Bitcoin has often continued to decline after similar 'bottom signals,' and the current 'reset' theory still requires more data validation.
Conclusion: Approach with caution and monitor variables
Currently, the evidence is insufficient to determine whether this fluctuation is a 'reset.' Continuous tracking of price trends, on-chain data, macroeconomic conditions, and regulatory dynamics is necessary. In the context of Bitcoin's high volatility, investors should be wary of risks and avoid blindly following trends.
Supporting the viewpoint of a 'healthy reset'
Market clearing and structural optimization
A large number of sell orders in the perpetual swap market triggered long liquidations, with open contracts decreasing by over ten billion dollars from a peak of 80 billion dollars. Weak-handed investors have exited the market, completing a 'detox' and laying the foundation for subsequent market movements.
On-chain indicators release positive signals with actual market value reaching a new high: 93.51 billion dollars, indicating that holder confidence remains strong, and there has been no panic selling due to short-term fluctuations.
Market sentiment is warming: the Fear and Greed Index rebounded from the panic zone (46) to 55, approaching the 'Greed' zone; the number of new Bitcoin addresses has turned positive, and new buyers entering the market are driving FOMO sentiment.
Support from off-exchange funds
On June 4, 10,000 BTC were traded off-exchange at a price of 104,700 dollars per coin, indicating strong support in the spot market and being regarded as one of the bottom signals.
Although BTC rebounded by 5.2% in the short term, it only recouped half of its losses, and historically, Bitcoin has shown extreme volatility, making it difficult to confirm long-term trends based on a single indicator.
Macroeconomic and regulatory risks remain present, with expectations for Federal Reserve interest rate cuts and U.S. economic data still unclear, which may exacerbate market fluctuations. Uncertainties exist regarding global cryptocurrency regulatory policies (such as the U.S. SEC's stance on ETFs), where tightening regulations could reverse market trends.
Historically, Bitcoin has often continued to decline after similar 'bottom signals,' and the current 'reset' theory still requires more data validation.
Conclusion: Approach with caution and monitor variables
Currently, the evidence is insufficient to determine whether this fluctuation is a 'reset.' Continuous tracking of price trends, on-chain data, macroeconomic conditions, and regulatory dynamics is necessary. In the context of Bitcoin's high volatility, investors should be wary of risks and avoid blindly following trends.
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BTC
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