Why did the sudden drop happen this time?
I think it is mainly because Bitcoin has repeatedly tried to break through $100,000 without success, and there are institutions shorting MicroStrategy's stock.
The FOMO sentiment among American investors has begun to weaken, and short-term investors are starting to panic and exit the market.
From the recent ETF data, both Bitcoin and Ethereum spot ETFs are declining. Especially Bitcoin, which has seen a large-scale sell-off, indicating that American investors' enthusiasm is cooling off.
From the exchange's Bitcoin inventory data, there has been a slight increase in the Bitcoin inventory on exchanges in recent days.
This may be because the continuous decline has caused some investors to panic, especially those who bought in the short term are worried that prices will not rise and are choosing to exit.
These newly transferred Bitcoins have not yet been fully digested, which may also be one of the reasons for the price drop.
From the recent URPD data, many investors who are at a loss have chosen to exit because they are worried about future trends. Many people believe that Bitcoin will fill the $80,000 gap.
Although the enthusiasm of American ETF investors has weakened, the overall amount of funds and purchasing power has not decreased.
From the stablecoin data, the market's trading volume has not significantly decreased, and the market capitalization of USDC is still rising.
This indicates that there are still quite a few investors entering the market, and the amount of USDC transferred to exchanges remains high, with no significant decline.
It can be seen that the sentiment of American ETF investors has reached a low point. Although this portion of funds is not enough to affect the market price, it represents the gradual exit of non-crypto investors.
Previous buyers had high expectations for $100,000, but repeated failures to break through have caused them to panic, leading to reductions in holdings. There are many such investors, resulting in some Bitcoins piling up on exchanges.
