Analysis: Market Sentiment Warms Up After Sharp Decline, BTC Begins Rebound After Hitting Low Since October 2024

Odaily News The cryptocurrency market has seen a phased recovery after experiencing intense selling pressure, rebounding above $65,000 after hitting its lowest level since October 2024, while Ethereum recovered from around $1,750 to near $1,900. On a macro level, overall pressure on risk assets remains the primary backdrop. Recent weakness in tech stocks and declining risk appetite among investors, coupled with synchronized volatility between precious metals and crypto assets, have further intensified the market deleveraging process, although panic sentiment has not completely subsided. Previously, the options market saw extreme protective buying, with some traders even positioning for put options with strike prices as low as $20,000, indicating the market is still hedging against extreme tail risks. Overall, this round of sharp decline primarily reflects a phased recovery following leverage unwinding and risk appetite contraction. A short-term technical rebound may have emerged, but the medium-term trend will still depend on macro liquidity, tech stock performance, and institutional fund flows. (CoinDesk)