The current market correction is mainly driven by the following factors:
1. Previous rapid increase in pace——Bitcoin surged rapidly to a high position within two weeks, with altcoins showing even more significant gains, accumulating a large amount of short-term profit-taking pressure and creating technical correction pressure.
2. Market sentiment is overly exuberant——Continuous buying by institutions, inflow of ETF funds, and the "FOMO sentiment" on social media have continuously raised market expectations, but the actual capacity to absorb funds has not kept pace.
3. Changes in the macro environment bring pressure——The uncertainty of the Federal Reserve's monetary policy, expectations of global liquidity contraction, and the decline of some risk assets have collectively intensified the volatility of the crypto market.
The current market contains both risks and opportunities; this correction is seen as a "stress test" for the market. Fluctuations often help to clear speculative chips, providing a healthier upward foundation for truly valuable assets. The crypto market is never short of narratives, but those who can navigate through cycles are often the patient ones.
