HTX exchange's chief analyst, Cloud, analyzed that the recent drop in Bitcoin prices is closer to a normal correction after a rebound rather than a trend reversal. He explained, "High U.S. Treasury yields are mainly a factor that pressures valuations, but their impact on overall liquidity is limited, and the funding structure and holding costs of the virtual asset market itself have not been damaged." He added, "This downturn appears to be closer to a temporary liquidation of positions ahead of the release of major economic indicators." However, he also warned, "It is necessary to pay attention to the decoupling (divergence) phenomenon between Bitcoin and altcoins. In a phase where marginal liquidity is shrinking, funds tend to concentrate on the most reliable leading asset (Bitcoin). Altcoins lack additional capital inflows to support them and have a high leverage ratio, leading to a greater expansion of their decline." He predicted that this decoupling is likely to continue until the Personal Consumption Expenditures (PCE) and non-farm employment figures, scheduled for release this week, are announced.
