Opinion: Bitcoin's recent volatility is a result of liquidity reallocation rather than a structural shift, and it will continue to exhibit characteristics of a high-risk asset in the short term.

In an interview, QCP executive Elbert Iswara stated that Bitcoin's recent rapid rebound from around $60,000 to above $70,000 is more likely a liquidity reset than a structural change in the market. He pointed out that despite the rapid pullback, the current price stabilization indicates that demand from long-term holders and institutions remains. Iswara believes that the current market direction is primarily driven by changes in the macro liquidity environment and interest rate expectations, while internal factors within the crypto market, such as ETF flows, derivatives positions, and deleveraging, amplify the magnitude and speed of volatility. He stated that in the short term, Bitcoin's performance is closer to that of a high-beta risk asset sensitive to liquidity, especially during periods of declining risk appetite, but this does not mean its long-term value storage narrative has failed. Bitcoin is more like a hybrid asset whose attributes shift with changes in the macroeconomic cycle. In the short term, key attention should be paid to the $60,000 to $65,000 range, changes in ETF flows, leverage and liquidation, and changes in the correlation between Bitcoin and US stocks. In the long term, the market should focus on the stability of institutional participation, market structure maturity, and adoption growth.