Core Viewpoint - Bitcoin's recent sell-off highlights a conflict between long-term investors and signs of structural weaknesses in the crypto market [1][2] Group 1: Market Reactions and Investor Sentiment - Long-time Bitcoin advocate Robert Kiyosaki views the decline as a buying opportunity, likening it to retail sales where consumers take advantage of discounts [2][3] - Kiyosaki is prepared to invest more, framing the current market conditions as favorable for long-term accumulation [3] - In contrast, experts like CryptoQuant CEO Ki Young Ju caution against optimism, citing a lack of new capital inflows and stagnant Realized Cap as indicators of profit-taking rather than growth [3][4] Group 2: Broader Market Context - The Bitcoin sell-off is part of a larger correction across various asset classes, described by Bull Theory as a chain reaction starting from small-cap equities and the US dollar, affecting stocks, precious metals, and finally crypto markets [5] - The interconnectedness of global markets is emphasized, indicating that the decline was not random but a sequential response to broader market pressures [5] Group 3: Valuation and Future Projections - Despite bearish signals, some quantitative analyses suggest Bitcoin may be undervalued, with a power-law model indicating it is trading approximately 35% below its 15-year trend [6] - This model projects that Bitcoin could rebound to $113,000 by mid-2026 and exceed $160,000 by early 2027, with potential returns over the next 12 months exceeding 100% [7] - The sell-off serves as a reminder that markets frequently test investor conviction and concentration [7]