Core Insights - The largest-ever crypto liquidation event has created short-term market chaos, but analysts suggest that long-term capital remains intact and structural demand is holding firm [2][4][6] Market Analysis - Glassnode and CryptoQuant report that despite weakened short-term momentum, large holders are accumulating assets, and fiat liquidity is increasing, with USDT supply growing by nearly $15 billion in 60 days [2][4] - U.S. spot bitcoin ETF inflows have reached $3.5 billion, indicating continued interest in the market [2] Diverging Perspectives - Glassnode views the sell-off as a structural purge that has removed speculative excess, leading to defensive positioning among traders, while CryptoQuant maintains a more optimistic outlook, suggesting a potential bullish phase if prices sustain above $115,000 [4][5] - The contrasting analyses reflect a broader market sentiment divide: cautious reset versus potential inflection point [5] Market Transition - Both firms indicate a market transitioning from excess to equilibrium, with capital still flowing through ETFs and stablecoins, but positioning remains defensive [6] - The future movement of bitcoin will depend on how quickly structural demand translates into renewed risk-taking [6] Recent Market Movement - Bitcoin's price fell to around $112,700 after an early dip below $110,000, influenced by profit-taking and external trade threats, though prices stabilized following signals from the Fed regarding the end of its tightening cycle [7]