The volatility of Bitcoin is only caused by short-term investors cashing out, and the overall trend remains healthy.

On May 16, Bitcoin fell to slightly above 101,000 last night, and then rebounded to above 104,000.

Meanwhile, altcoins performed relatively weakly, experiencing a general downturn. Ruslan Lienkha, the market director at YouHodler, stated that the current pullback seems to be a correction within a larger mid-term upward trend.

After the postponement of tariffs between China and the U.S., the momentum in the stock market has weakened, and short-term traders have begun to lock in profits. This change in sentiment has spread to higher-risk assets, including Bitcoin.

Trading analysts indicate that any price fluctuation below 5% is often considered market noise.

Part of this volatility may be due to profit-taking, as traders are cashing out after recent gains.

Due to the thin liquidity, even slight sell-offs can quickly translate into noticeable pullbacks. Eliminating the impact of short-term fluctuations, the overall price trend appears healthy, with no clear signs of an imminent peak.

Vetle Lunde, a senior analyst at K33 Research, mentioned that BTC has just emerged from one of the longest periods below neutral financing rates, which is a signal for defensive positioning.

This is similar to the patterns seen in October 2023 and October 2024, which are quite different from the price trends observed near past market peaks. He optimistically believes that after BTC broke through 100,000, no bubble has yet appeared, paving the way for potential new highs.

According to research by StenoResearch, the tailwind for cryptocurrencies comes from the invisible expansion of private credit, especially in the U.S. and Europe. Leading indicators predict that global financial conditions will improve in the summer.