Analyst: Bitcoin volatility is only caused by short-term investors fleeing for profit, overall trend remains healthy

According to BlockBeats, on May 16th, Bitcoin fell slightly above $101000 last night and then rebounded to above $104000. However, altcoins have shown relatively weak performance and experienced a general decline. YouHodler's market director Ruslan Lienkha stated that the current pullback appears to be a pullback within a larger medium-term uptrend. After the postponement of tariffs between China and the United States, the upward momentum of the stock market has weakened, and short-term traders have begun to lock in profits. This emotional shift has spread to high-risk assets, including Bitcoin. CoinPanel trading automation expert Kirill Kretov stated that any price fluctuations below 5% are typically considered market noise. Part of the reason for this volatility may be profit taking, as traders have taken profits after recent gains. Due to such thin liquidity, even a small sell-off can quickly turn into a significant pullback. Getting rid of the impact of short-term fluctuations, the overall price trend seems healthy, with no obvious signs of reaching a peak. Vetle Lunde, Senior Analyst at K33 Research, stated that BTC has just emerged from one of the longest periods of below neutral funding rates, which is a signal of defensive positioning. This is similar to the pattern of October 2023 and October 2024, which is far from the price trend near the peak of the market in the past. He was optimistic that after BTC broke through $100000, there was no foam, paving the way for a potential new high. According to Steno Research, the tailwind of cryptocurrencies stems from the invisible expansion of private credit, especially in the United States and Europe. Forward looking indicators predict that global financial conditions will improve in the summer, mainly driven by the weakening of the US dollar.