Core Viewpoint - The cryptocurrency market is experiencing a significant downturn, with Bitcoin dropping to $93,005 and Ethereum falling to $3,004, indicating a broader market correction driven by a reset in risk appetite rather than panic [2][3]. Market Dynamics - The recent decline is characterized as a "risk preference reset," where funds are moving from high-volatility assets to core assets like Bitcoin and Ethereum, reflecting a structural de-risking process [2][3]. - The downturn is not attributed to a single event but rather a combination of factors, including prolonged high prices leading to fatigue among bulls and slight tightening of macro liquidity [3][4]. Bitcoin Analysis - Bitcoin's price struggles are linked to its inability to break through the $98,000–$100,000 range, leading to a shift in market sentiment from "new highs" to potential deep corrections [3][4]. - The accumulation of perpetual contract positions has led to increased leverage risks, resulting in rapid liquidation of long positions during the downturn [4]. Ethereum Resilience - Ethereum has shown more resilience compared to Bitcoin, with a smaller decline and stronger support levels, driven by structural demand rather than speculative buying [5]. - The Ethereum ecosystem's value capture ability is increasing, supported by various narratives such as L2, DeFi, and real-world asset integration, leading to sustained on-chain activity [5][6]. Altcoin Market Behavior - Altcoins have experienced significant declines, with many tokens dropping 8%–10%, reflecting a typical outcome of reshaped risk preferences [6][7]. - Despite the downturn in altcoins, the overall market structure remains healthy, indicating a "healthy turnover" as funds shift from riskier assets to more stable ones [7]. On-Chain Data Insights - On-chain data shows a continuous increase in long-term holdings of core assets, suggesting that long-term funds are still accumulating [7][8]. - The liquidity in stablecoin pools remains stable, indicating no signs of panic or significant withdrawals [7][8].