Fortunately, this is just a correction in a bull market, not the prelude to a bear market.
Recent market volatility has caused concern among many investors, but upon calm analysis, this decline resembles a correction within a bull market rather than the beginning of a bear market.
Why is it a correction and not a bear market?
1️⃣ The macro funding environment has not yet reversed.
Global liquidity has not significantly tightened, especially against the backdrop of the gradual advancement of Bitcoin spot ETFs, where the market still anticipates new capital inflows. In this environment, a bear market is unlikely to arrive prematurely.
2️⃣ Institutional movements remain positive.
The recent increase in holdings by institutions such as Grayscale and MicroStrategy shows that the 'big players' in the market remain confident about the future. These signals indicate that major funds have not withdrawn on a large scale but are instead accumulating positions during the adjustment.
3️⃣ A healthy adjustment after overheated market sentiment.
The previous rapid rise has led to a buildup of high profit-taking positions in the market, making this correction completely normal. More importantly, market hotspots have not completely extinguished; funds have only temporarily flowed out of overheated sectors, waiting for new opportunities.
How to view the current market situation?
• A correction is part of a bull market and is accumulating momentum for healthier rises in the future.
• Investors need to detach themselves from panic emotions and view market fluctuations rationally.
The adjustment in a bull market is not scary; on the contrary, it presents an opportunity for capital allocation. As long as the overall trend remains unchanged, patiently waiting may lead to greater returns!