Foreign media commentators noted that after Bitcoin fell below $64,000, the market is reassessing the short-term pressure on crypto assets. Bitwise CEO Hunter Horsley believes that investors should not lose patience with crypto assets due to the AI hype and expectations of SpaceX's IPO, and that it is more appropriate to measure this market over a multi-year period rather than through fluctuations of weeks or months.
Distinguishing between long-term perspective and short-term trading
Horsley compared the development pace of the crypto industry to the growth paths of technology companies like SpaceX and OpenAI. He noted that these technology platforms often undergo years of development, funding pressure, and market skepticism, typically only gaining widespread public attention later in the process.
According to him, if the judgment is based primarily on price changes over the next 12 months, it's closer to trading than long-term investment. Both approaches exist, but the timeframes are different.
Bitcoin is expected to trade in the $60,000 to $62,000 range.
The article mentions that Bitcoin is currently attempting to hold the $60,000 to $62,000 support range. The price had previously fallen below $64,000, and the short-term trend remains weak. The market is also watching the inflow of Bitcoin into exchanges from medium-term holders, particularly those holding Bitcoin for 3 to 6 months and 6 to 12 months, showing a more significant shift.
When these long-dormant positions re-enter the exchange, they are typically seen as a potential selling pressure signal, as the underlying assets may be sold or used as collateral. A single inflow does not necessarily indicate a sell-off, but if it occurs repeatedly during a price decline, it often exacerbates market concerns about weakening confidence in existing positions.
The article mentions that for Bitcoin to form a sustained rebound, spot buying needs to recover while selling pressure decreases. Exchange inflow data therefore becomes an important indicator for short-term traders to observe whether a pullback will continue.
AI funding and SpaceX IPO divert funds
The article also cites market opinions suggesting that the recent weakness in the crypto market is related to the shift of funds towards AI infrastructure and large-scale technology deals. Michael Saylor believes that the large influx of capital into data centers, GPU chips, and related AI construction over the past few months has reduced the liquidity available to other high-risk assets.
Under this narrative, the market also views SpaceX's IPO expectations as a new factor attracting capital. The article states that when faced with large funding rounds or opportunities to allocate to tech stocks, institutions may first sell more liquid Bitcoin to free up funds.
The core message of the commentary is that the recent price pullback does not necessarily indicate a significant deterioration in the fundamentals of the crypto network; rather, it may reflect a reallocation of funds among different high-risk assets. For long-term investors, short-term fluctuations and shifts in popular sectors do not necessarily alter their longer-term judgments.
