Analyst: Bitcoin volatility is only caused by short-term investors taking profits and fleeing, and the overall trend remains healthy

Odaily News Bitcoin fell to just above $101,000 last night, and then rebounded to above $104,000. Altcoins, on the other hand, performed relatively weakly, with a general decline.
Ruslan Lienkha, head of markets at YouHodler, said the current pullback appears to be a pullback within a larger medium-term uptrend. After the extension of the US-China tariffs, the stock market's upward momentum has weakened and short-term traders have begun to lock in profits. This sentiment shift has spread to riskier assets, including Bitcoin.
Kirill Kretov, trading automation expert at CoinPanel, said that any price fluctuations below 5% could generally be considered market noise. Part of this volatility could be due to profit-taking as traders take profits after recent gains. With liquidity so thin, even a small sell-off could quickly turn into a significant pullback. Aside from short-term volatility, the overall price action looks healthy, with no clear signs of an impending top.
Vetle Lunde, senior analyst at K33 Research, said that BTC has just emerged from one of the longest periods of below-neutral funding rates, a sign of defensive positioning. This is similar to the patterns of October 2023 and October 2024, and is a far cry from past price movements near the market's peak. He is optimistic that BTC has not yet seen a bubble after breaking through $100,000, paving the way for potential new highs.
According to Steno Research, the tailwind for cryptocurrencies stems from a stealth expansion of private credit, especially in the U.S. and Europe. Forward-looking indicators predict that global financial conditions will improve over the summer, driven primarily by a weaker U.S. dollar.