Behind the Bitcoin fall: Close Position wave, policy concerns, and risk appetite making a strong push at the same time

Recently, Bitcoin has seen a significant fall, and the underlying drivers are quite complex. On one hand, there is a chain reaction caused by liquidation, while on the other hand, the momentum from the slowing down of encryption policy advancements and corporate purchases is also weakening. Additionally, with the increase in global policy uncertainties, market risk appetite has been suppressed.

Looking at the situation in the US stock market, the AI sector is performing poorly, and the employment data is not that impressive, with an overall weak performance. However, the inflation data is improving, and the performance of semiconductor companies is also good, which has somewhat alleviated the fall.

Interestingly, in this risk atmosphere, gold has actually strengthened. With the rise in safe-haven demand and the global asset allocation trend driving funds in, the price of gold continues to rise and has approached historical highs.

It is worth noting that MicroStrategy's stock price has performed moderately during this period. Although they have been continuously increasing their holdings in Bitcoin, the practice of equity financing purchases has raised market concerns about equity dilution, and this negative expectation has outweighed the positive effects of increasing Bitcoin holdings, resulting in pressure on the stock price.