The Wall Street Giants' Massacre Begins! Are Retail Investors Still Catching Flying Knives?

The market once again verifies the close link between cryptocurrency and traditional financial markets, with Bitcoin's continued decline acting like a mirror, reflecting the short-term emotional fluctuations of global risk assets.

According to BlockBeats data, Bitcoin has fallen for three consecutive days, dragging down U.S. stock cryptocurrency concept stocks in pre-market trading—Proshares Bitcoin Strategy ETF is down 4.3%, while mining stocks Riot Platforms and Marathon Digital have dropped 3.6% and 3.7%, respectively.

This linkage is not coincidental: Bitcoin, as a barometer of the crypto market, often transmits volatility quickly to a wider market through traditional financial channels such as ETFs and mining stocks.

In my view, this pullback appears more like the market's stress response to recent tightening of macro liquidity (such as rising U.S. Treasury yields), rather than a reversal of the industry's fundamentals.

For example, the strategy of institutions like MicroStrategy to hold Bitcoin long-term has not wavered, and some mining companies are still actively expanding production, indicating that capital still recognizes the underlying value.

Looking back at June 2022 when Bitcoin plummeted below $20,000, stocks of mining companies like RIOT and MARA saw single-day declines of over 10%, but in the following six months, as Bitcoin recovered, the leading mining stocks rebounded far more than the broader market.

The current decline is still moderate; if Bitcoin can hold the key support level of $25,000, the concept stocks may show resilience again.

The market always cycles between fear and greed; will you choose to panic sell now, or take a contrarian position? #比特币巨鲸换仓以太坊

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