Bitcoin recently hit an all-time high above $124,000โฆ but on Monday, the market was hit with a sharp drop, pushing the price below $113,000 for the first time in two weeks.
More than $113 million in long positions were liquidated, sending shockwaves across the crypto space ๐จ.
However โ if you zoom out and look at the data โ this might actually be another classic setup for a strong rebound ๐น๐.
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๐ง What Caused the Sudden Crash?
1๏ธโฃ SEC Investigation Linked to Trump
Reports revealed that the SEC is investigating fraud and market manipulation at Alt5 Sigma, a crypto firm tied to World Liberty Financial โ co-founded by former President Donald Trump.
Trump previously disclosed $57.4M in earnings from this company, and his son Eric Trump was expected to join the board.
This headline triggered new political and regulatory uncertainty โ๏ธโ ๏ธ โ and crypto markets reacted fast.
2๏ธโฃ Weakness in Tech and AI Stocks
A 1.5% drop in the Nasdaq 100 reduced overall risk appetite.
On top of that, a report by MIT-NANDA revealed that 95% of AI pilot projects across 150 companies failed to generate meaningful revenue.
This shattered investor confidence in what used to be one of Wall Streetโs most bullish narratives, and that negative wave spilled into crypto.
3๏ธโฃ New U.S. Tariffs & Macro Fears
The U.S. announced 50% tariffs on 407 new aluminum- and steel-related products.
Investors are worried this will boost inflation again and hurt global supply chains.
Meanwhile, UBS raised its gold forecast to $3,700 by 2026, signaling that more investors are moving toward safe-haven assets.
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๐ Should You Be Afraid? Or Getting Ready to Buy?
In the options market, the 30-day delta skew jumped to 12% โ its highest in 4 months.
Normally, this metric stays between -6% and +6%.
๐ Above 10% = EXTREME FEAR.
The last time we saw a similar spike (April 7), Bitcoin rallied 40% within the next month ๐คฏ
In other words, history shows these moments of panic often end up becoming huge buying opportunities.
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๐ฎ Is the Bull Run Over? Absolutely Not.
โ ETF demand, corporate holdings and institutional inflows are still strong.
โ Outflows from the stock market could send more capital toward Bitcoin as a safe alternative.
โ There are no signs of structural weakness โ just short-term emotional selling.
> โFear always overshoots reality โ and those who buy during panic often win the most.โ
At this point, $112Kโ$113K could turn into a local bottom if historical patterns repeat.
Long-term investors are quietly accumulating here while emotional traders exit in panic.
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๐ Final Takeaway
This drop is not the end of the bull cycle โ itโs a fear-driven correction.
Historically, these types of shakeouts prepare the stage for the next major rally.
The big question isnโt what Bitcoin just didโฆ it's what you do at these key moments.
๐ Are you reacting like a short-term traderโฆ
or positioning yourself like a long-term visionary? ๐ก
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