Bitcoin crash to $104K was ‘flush’, not crypto cycle ‘failure’
A recent Bitcoin drop to $104,000 is viewed by analysts as a healthy flush of leverage, not a cycle failure.Summary
Bitcoin experienced a four-day drop to a four-month low of $104,000 last week, which blockchain analytics firm Glassnode suggests was a "defensive rotation" that flushed out excess leverage. Onchain data indicates that speculative capital is becoming more dominant among short-term holders, signaling a market shift toward capital preservation. Furthermore, a 30% fall in Bitcoin's open interest suggests the market is less vulnerable to further liquidation cascades. Despite this, some analysts, like Samson Mow, note that the current price range is challenging for investors with weak conviction, as the cycle progression differs from previous patterns. Meanwhile, long-term holders continue selling to institutional buyers like ETFs, which recently saw net outflows amid political uncertainty, though this selling pressure must ease for significant upside.
(Source：Cointelegraph)