Viewpoint: Bitcoin's Recent Volatility Reflects Liquidity Reset, Not Structural Shift; Short-Term Behavior Remains High-Risk Asset

Odaily News QCP executive Elbert Iswara stated in an interview that Bitcoin's recent rapid rebound from around $60,000 to above $70,000 is more likely a liquidity reset rather than a structural change in the market. He pointed out that despite the rapid pullback, the current price stabilization indicates that demand from long-term holders and institutions persists. Elbert Iswara believes the current market direction is primarily driven by changes in the macro liquidity environment and interest rate expectations, while internal crypto market factors such as ETF flows, derivatives positioning, and leverage unwinding amplify the volatility's magnitude and speed. He stated that in the short term, Bitcoin's performance more closely resembles a high-Beta risk asset sensitive to liquidity, especially during periods of declining risk appetite, but this does not mean its long-term value storage narrative is invalid. Bitcoin is more akin to a hybrid asset whose characteristics shift with the macro cycle. In the short term, key focuses should be the critical $60,000 to $65,000 range, changes in ETF flows, leverage and liquidation levels, and the correlation between Bitcoin and U.S. stocks. In the long term, the market should focus on the stability of institutional participation, market structure maturity, and adoption growth.