Analysis: Crypto Market Rejects "Falling Knife," Liquidations and Risk Aversion Sentiment Resonate

Odaily News Bitcoin hit a new low in about 16 months this morning, with Ethereum falling to around $1,750 during the same period, but both subsequently rebounded. Large-scale deleveraging occurred simultaneously in the on-chain and derivatives markets, with market sentiment quickly shifting to a defensive mode. Analysts pointed out that this round of decline was caused by the superposition of multiple factors, including the forced liquidation of over-leveraged long positions, institutional capital outflows, and overall pressure on macro risk assets, collectively triggering a typical "leveraged stampede-style de-risking." Trading behavior has also shown a significant shift. The current market has moved from "buying the dip" to waiting for trend confirmation, with capital placing greater emphasis on capital preservation. Rebound attempts often face selling pressure, further strengthening short-term downward momentum. The market is generally focused on the support strength within the $58,000-$60,000 range. (The Block)