Last week, Bitcoin really gave everyone a thrill. It surged to $123,640, setting a new historical high, but as soon as the U.S. inflation data was released, it immediately tanked to around $115,000. This back-and-forth caused liquidation amounts to exceed $1 billion, and the retail investors were harvested once again.
To be honest, this pullback doesn’t seem like the end of a bull market. From a technical perspective, Bitcoin is consolidating between $120,000 and $115,000, and this sideways movement is actually building momentum for the next wave of increases. Look at those institutions; they were still aggressively increasing their Bitcoin ETF positions in the second quarter, indicating that major funds are still quite confident about the future market.
On-chain data is also quite healthy, with the number of active addresses steadily increasing and the proportion of long-term holders getting higher. These are all good signs. The key point is that the amount of Bitcoin circulating in the market is decreasing because institutions are stocking up, and the tight supply will naturally drive up prices.
This wave of liquidations isn’t entirely a bad thing; it cleared out excessive leverage in the market and created conditions for a healthy upward movement afterward. Now it depends on what the Federal Reserve does next. If more dovish signals can be released, Bitcoin may very well hit new highs again. Overall, this is just a normal adjustment in the middle of a bull market—the trend is still intact, so there's no need to panic.
