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

Odaily News According to CoinDesk, the cryptocurrency market has seen a phased recovery following intense selling pressure, rebounding above $65,000 after hitting its lowest level since October 2024. Ethereum has also 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 investor risk appetite, coupled with synchronized volatility in precious metals and crypto assets, have further intensified the market deleveraging process, although panic sentiment has not completely subsided. Earlier, extreme protective buying emerged in the options market, with some traders even deploying put options with strike prices as low as $20,000, indicating the market is still hedging against extreme tail risks. Overall, this sharp decline primarily reflects 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)