On April 27, Bitcoin fell below $94,000. Data from Coinglass shows that over 100,000 people in the cryptocurrency market were liquidated in the past 24 hours. Looking at the longer timeline, Bitcoin's performance this year has been tumultuous, resembling a rollercoaster market—on January 20, it reached a historic high of $110,000; however, it then fell all the way down to $74,457 on April 7, with a maximum drop of over 32.3%. Just when the bears were preparing to celebrate, Bitcoin rebounded off the bottom and continued to rise, fluctuating around $95,000.
Bitcoin Trend
However, the trend of Bitcoin in this round is slightly different from before. In the past, Bitcoin and US stocks generally moved up and down together, but in recent weeks, the US stock market has been in panic and turbulence caused by tariffs. The S&P 500 has corrected by 3.66% in the past month, but Bitcoin's upward trend remains strong, with a monthly increase of 8.31%. While the Dow and Nasdaq have recently experienced upward fluctuations, Bitcoin has shown a downward trend.
From an analyst's perspective, this round of correction may be the result of market rebalancing, especially as traders adjust their positions before the end of the year. Ryan McMillin, Chief Investment Officer of crypto fund manager Merktle Tree Capital, stated that the recent decline in Bitcoin's price is the result of multiple factors working together. McMillin noted that part of the reason for the price drop is related to sell barriers at psychological price levels (such as $100,000), particularly after the explosive increase following Trump's election as president, where the market needs time to digest these surging gains.
Additionally, McMillin pointed out that the increase in leveraged long positions (i.e., investors betting on rising Bitcoin prices) in the Bitcoin market has added downward pressure on prices. Many market makers, in the context of a surge in these long positions, may deliberately lower prices to force the leveraged longs to liquidate, thereby triggering a larger-scale price correction.
“The short-term volatility of the Bitcoin market is a norm in the cryptocurrency market, especially under the influence of large-scale investor participation and leveraged positions, where prices often experience severe fluctuations.” An industry insider told reporters that in the short term, Bitcoin may still face certain market pressures, as market sentiment, regulatory changes, and macroeconomic factors could all impact Bitcoin's price.
In addition, the cryptocurrency market still faces many challenges and risks. First, the volatility of the cryptocurrency market is significant, and prices can easily be affected by market sentiment, policy changes, and various other factors. Second, the regulatory policies of the cryptocurrency market are still in a process of continuous improvement, leading to certain uncertainties. Furthermore, issues related to the security and privacy protection of cryptocurrencies also need further attention and resolution.
For investors, participating in the cryptocurrency market requires rationality and caution. While pursuing returns, one must also fully recognize the risks and challenges of the market. Investors should reasonably allocate their assets based on their risk tolerance and investment goals, and avoid blindly following trends and over-investing.
