Bitcoin's (BTC) fast tumble back to $84,000 during U.S. morning hours Thursday came alongside equally speedy declines in stocks and precious metals. But while stocks, gold and silver have since bounced off their worst levels, crypto remains near its session lows, with BTC, ether (ETH), XRP (XRP), and solana (SOL) all down 5%-7% over the last 24 hours. "Everything from weak earnings results to worries around Iran and government shutdown are causing a broad-based selloff," said Joshua Lim, global co-head ...

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]