In just a few weeks, Bitcoin's market capitalization has evaporated by $500 billion, with ETF fund outflows, discounts on Coinbase, structural dumping, and poorly positioned long positions being liquidated, all without any obvious catalyst to stimulate a market rebound. Moreover, concerns such as whale dumping, severely loss-making market makers, a lack of defensive liquidity supply, and the survival threats posed by quantum crises continue to hinder Bitcoin's potential for a rapid recovery.

Once viewed as digital gold, Bitcoin is now undergoing a dual blow of a liquidity crisis and structural dumping.

In the past few weeks, the Bitcoin market has undergone a brutal deleveraging process. The evaporation of $500 billion in market capitalization is not just a change in numbers, but a direct reflection of the deterioration of the underlying market structure.

01 Multiple factors combined trigger a spiraling decline

The current issues facing the Bitcoin market have obvious systemic characteristics.

The continuous outflow of ETF funds has directly weakened the institutional buying support, while the trading discount on Coinbase indicates that professional traders are selling.

More seriously, structural selling forms a self-reinforcing vicious cycle: price declines trigger long positions liquidation, liquidation exacerbates price declines, leading to more liquidations.

Data shows that if Bitcoin breaks below the key support level, it will face billions of dollars in long positions liquidation pressure.

02 The microstructure of the market has been severely damaged.

The liquidity supply mechanism in the Bitcoin market is failing.

Whale dumping directly impacts market depth, while severely loss-making market makers are forced to reduce their risk exposure, further weakening the market's liquidity buffer.

The lack of defensive liquidity supply means that sell orders of any size could trigger disproportionate price fluctuations. In this scenario, even without new bearish catalysts, the market finds it difficult to organize an effective rebound.

03 The road to recovery is fraught with obstacles

Bitcoin faces multiple obstacles in its quest for a rapid rebound.

In addition to the numerous technical resistances, the damage to market confidence may take a longer time to repair. The lukewarm attitude of institutional investors towards ETFs combines with the panic selling by retail investors.

Deeper concerns arise from the potential threat of quantum computing to cryptographic security. Although this long-term risk is not imminent, it has already begun to influence the decisions of some long-term holders.

The Bitcoin market is undergoing a thorough test of confidence. Before structural issues and the liquidity crisis are resolved, any rebound may merely be a technical correction on the way down.

The market's self-repair takes time, and this time, the challenges faced by Bitcoin are much more complex than simple price fluctuations. #比特币行情观察