Bitcoin has finally pulled back, and the heart that has been hanging in suspense has finally calmed down.
Many people are very panicked and worried about the future market trends, fearing a major pullback or a steep decline.
Although we cannot predict the future, statistically speaking, the likelihood of such a situation occurring is quite low.
This pullback shows that long-term holders are starting to cash out, rather than due to ETFs.
This also indicates that at the crucial milestone of 100,000, major players are also engaging in installment plans, and institutions have been trading, keeping Bitcoin at a high position.
Some long-term holders have started to cash out; they believe that Bitcoin has reached a point where a pullback is necessary, and having already hit a historical high, they are cashing out some profits for safety. This approach is actually perfectly reasonable.
Institutions buy, long-term investors sell; it was originally a delicate balance. If Bitcoin starts to deeply pull back from this position, then it would mean that long-term investors have been taken advantage of by institutions.
But no matter how much the author thinks, they cannot make sense of this logic.
Long-term investors indeed seem very formidable in the eyes of us retail investors, but in front of institutions, they are just small players.
Institutions may not care about these marginal gains; they are looking at the bigger picture.