Has the crypto bear market really arrived? Let's hear what the traders have to say.
Welcome to this wake-up party after the "bull market carnival," to all the new recruits and loyal believers of the crypto market. The recent days have been tough; Bitcoin has fallen below the $80,000 mark, hitting a low of $76,560, with a single-day drop of over 8%. Ethereum continues to struggle, briefly dropping below $1,800, reaching a low of $1,760. This scene seems to remind us: Is the bull already dead?
According to statistics, the total liquidation amount in the cryptocurrency market reached $937 million in the past 24 hours, with long positions liquidating $742 million and short positions liquidating $194 million, totaling 331,076 people liquidated. The largest single liquidation occurred in the BTCUSD trading pair on the Bybit exchange, valued at $5.2611 million.
In the face of this "bloodbath," various experts have expressed their opinions. BitMEX co-founder Arthur Hayes stated that Bitcoin may find a bottom around $70,000, suggesting that everyone be patient and not rush to buy the dip, but wait until the Federal Reserve and central banks start to inject liquidity into the market before increasing their positions. ARK Invest founder Cathie Wood believes that the current market is digesting the final stage of rolling recession, which will give the Trump administration and the Federal Reserve more policy adjustment space than investors expect, possibly pushing the U.S. economy into a "deflationary boom" in the second half of this year.
Meanwhile, YouHodler market manager Ruslan Lienkha pointed out that last year's Bitcoin consolidation phase lasted for several months, and the current market environment is more complex. The pessimistic sentiment in the U.S. stock market prevails, and worries about a possible economic recession in the U.S. are intensifying, which could lead the current consolidation phase to evolve into a mid-term bear market. Yuga Labs Vice President of Blockchain Business 0x Quit bluntly stated that if this is the beginning of a bear market, the price of ETH could be far below $1,500, even dropping to $200-$400, which means an additional drop of 80% from the current price, totaling a 90% drop, consistent with past bear markets.
So, has the crypto bear market really arrived? Maybe. But as the old saying goes: "The market is always right." Personally, I remain very cautiously optimistic; what needs to be done now is to reduce leverage, hold onto one's chips, and patiently wait for signals of improved liquidity.
