Bitcoin plummets, but institutions are increasing their positions? This may be the prelude to a new round of 'bottom rebound'.
In the last 24 hours, the crypto market has been quite surreal:
Prices are falling, sentiment is cold, but the data tells us that this may not be the end, but the starting point for the next round.
Signal 1: Large options are expiring, yet the market remains unusually calm.
Large amounts of BTC and ETH options are set to expire, and theoretically, volatility should increase, but the market has stabilized instead. This indicates that high leverage has been washed out, leaving behind funds with stronger volatility resistance.
Signal 2: Institutions have not exited; instead, they are slowly flowing back.
On one side, retail investors are panicking and cutting their positions, while institutions and long-term funds are intensifying their layouts for leading assets and infrastructure projects. Prices are falling, valuations are compressing, but for many professional funds, this is actually a 'discount window'.
Three keywords worth paying attention to:
De-leveraging: Short-term sharp declines may actually be healthier in the long run;
Institutionalization: More and more traditional finance is treating crypto as part of asset allocation;
Extremely pessimistic sentiment: Historically, this often corresponds to stage bottom areas.
My view is:
This may not immediately trigger a new bull market, but it is likely laying the groundwork for the next major market movement. The real key is not the ups and downs of the past day or two, but who dares to seriously recognize structural opportunities when sentiment is at its worst.
Do you think the current crypto market is the 'eve of the apocalypse' or a 'deep breath before a new cycle'?
