Bitcoin Crashes to $110,000: Whale Sell-off or Long Liquidation? Currently, there are mainly two viewpoints in the market:
The first viewpoint suggests that the drop in Bitcoin price is primarily due to early holders, known as 'whales', selling off their large amounts of Bitcoin. The market is struggling to absorb such a large supply in the short term—after all, the current price for one Bitcoin is as high as $110,000.
Simply put, the market hasn't reacted yet, or there may not be enough USD liquidity to absorb these sold Bitcoins.
If this is the case, it may be difficult for the Bitcoin price to return to previous highs, unless cryptocurrency assets gain recognition from more large institutions and funds, forming a more stable support capacity.
The second viewpoint holds that this drop is purely a liquidation operation targeting long positions, and once the liquidation is complete, the price will be boosted by favorable news such as interest rate cuts.
In this case, the market recovery may be smoother—after all, liquidations between long and short positions are common operations in the cryptocurrency market; it's just that this time the scale of liquidation is larger than usual.
The above is just a summary and sharing of personal market viewpoints, and everyone is welcome to discuss rationally. If there are any incorrect analyses, I ask for your understanding.
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