Last night, Bitcoin ($BTC) experienced capital outflows, while Ethereum ($ETH) remained relatively stable, even seeing some capital inflow.
Such changes in capital flow are widely considered to be the main reason for the market correction.
However, this does not indicate a serious bearish signal; rather, it seems more like a rotation of positions among institutions.
Adjustments in the market like this are not unexpected, after all, following such a strong rally, a proper correction is normal and necessary, helping the healthy development of the market.
Looking back at recent trends, one might find that the increase in Bitcoin's price has been quite substantial. If there hadn't been a proper correction, the excessive enthusiasm in the market could lead to a greater bubble risk, which would not be good for the long-term development of the crypto market.
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Therefore, this correction may be the market making necessary adjustments, and it could also be a signal that institutional investors are beginning to adjust their strategies.
It is worth noting that although the price of Bitcoin has fallen, other non-mainstream cryptocurrencies have not followed suit, with quite a few altcoins maintaining relatively strong trends.
Especially some altcoins that were not driven by Bitcoin's surge; they may be accumulating strength, preparing for their own explosive moments.
This phenomenon might be a potential signal in the market, prompting us to pay attention to those crypto assets that have not fully exploded yet, waiting for their rebound opportunities.
Overall, the current market adjustment does not signify a pessimistic sentiment in the crypto market, but rather resembles a healthy correction period.
During this time, changes in capital flow provide new opportunities, especially for those cryptocurrencies that have not risen significantly; these could be precursors to future upward movements.
I am full of expectations for the future performance of these coins and believe they may have surprising performances in the upcoming market conditions.
