
Jakarta, Pintu News – The aggressive correction in Bitcoin is simultaneously providing a market “reset” – eroding short-term leveraged positions and reorganizing expectations. If the global risk recovery goes ahead, Bitcoin could be the “first mover” of the rebound, making the asset more attractive as part of a diversified portfolio. However, volatility remains high – meaning sensitivity to macro sentiment remains high.
According to reports from the crypto media, a small correction of around 4% in tech stock indices such as the Nasdaq 100 is dramatically reflected in the price of Bitcoin – to illustrate, Bitcoin was down almost 30%. This discrepancy shows that Bitcoin’s movement relative to traditional markets can be quite exaggerative during corrections.
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According to analysis from a financial advisory group, the worst of the correction has passed the tipping point, opening up the opportunity for Bitcoin to rebound much more strongly if demand for risk assets revives. Bitcoin has been called the asset with the deepest “market reset” – meaning that when risk appreciation returns, Bitcoin is more likely to bounce first than stocks or gold.
Bitcoin has shown in recent months that it “mimics” the Nasdaq – but with great amplification. Small moves in the stock market translate into big moves in crypto. This phenomenon shows that Bitcoin is increasingly seen as part of a “risk assets” portfolio, not just a crypto asset.
The sharp decline has been caused by the liquidation of large leveraged positions, mainly from crypto derivatives. Many margin positions were forced to close – forcing assets to drop sharply in a short period of time. According to analysts’ assessments, this liquidation phase is often a turning point – after the clearing of speculative positions, the market can be more stable and ready for a rebound.
If interest in risk assets picks up again, Bitcoin is predicted to outperform stocks and gold in the medium term. This is presented by global analysts as the most likely scenario. In the context of a deep correction period, Bitcoin is now monitored as a top crypto asset that can “bounce back quickly” when sentiment changes – making it a highlight for both institutional and retail investors.
Also Read: 5 Facts about Bitcoin Price Drop to US$ 85,000 – Implications for Crypto Market!
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The term refers to the fact that small movements in the stock market (e.g. 4% in the Nasdaq) can result in much larger fluctuations in Bitcoin – in the most recent case, reaching almost 30%.
Because Bitcoin has already gone through major liquidations in leveraged positions – the market is considered “clean” of extreme speculation – so when risk-on returns, demand could come back strong and drive a significant rebound.
Not always. The correction that occurs can be seen as part of the market cycle; after the clearing of risky positions, the market can be healthier and ready for recovery.
No guarantees. Rebound potential is high if macro conditions and market sentiment are favorable, but remains dependent on global developments and risk asset market dynamics.
According to academic research, the correlation between Bitcoin and stock indices has increased significantly over the past few years – suggesting that Bitcoin is increasingly playing the role of a mainstream financial asset in global portfolios.
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