Analyst views recent BTC drop as temporary correction

HTX chief analyst Cloud stated that the recent decline in Bitcoin prices is a normal correction following a rebound, rather than a trend reversal. Elevated U.S. Treasury yields are impacting valuations, but their effect on overall liquidity is limited. The funding structure and holding costs of the crypto market remain intact. Cloud noted that the decline appears to be a temporary unwinding of positions ahead of key economic data releases. He also highlighted a caution regarding the decoupling between Bitcoin and altcoins, as diminishing marginal liquidity leads to capital concentrating in Bitcoin, while altcoins struggle with a lack of inflows and are more susceptible to declines due to higher leverage. This decoupling is expected to continue until the release of this week's personal consumption expenditures data and nonfarm payrolls report.

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