Analysis: Market sentiment recovers after sharp decline, BTC rebounds after hitting low since October 2024

Odaily News The cryptocurrency market has experienced a phased recovery after a severe sell-off, 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, extreme protective buying emerged in the options market, 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 reflects more of a phased recovery following leverage unwinding and risk appetite contraction. A short-term technical rebound may have already emerged, but the medium-term trend will still depend on macro liquidity, tech stock performance, and institutional capital flows. (CoinDesk)