Is market panic just fear? The truth behind Bitcoin's recent correction and next year's policy benefits

Question

[Bitpush] A research head at a leading institution recently released a December market review and offered an interesting perspective: all the things people are worried about now—like quantum computing threats or certain institutions potentially dumping—are actually distant hypothetical risks, not the real, pressing problems at hand.

It’s true that Bitcoin’s recent correction has been pretty severe, the harshest pullback since the 2022–2023 bear market. But if you look closely, this round of panic was mostly triggered by exaggerated long-term risks; the actual market structure itself is largely intact. The real reasons for the drop? Excessive leverage in derivatives, veteran holders cashing out in large numbers, and a more dispersed supply side—these are the direct drivers pushing prices to recent lows.

That said, looking ahead, there are actually quite a few positive factors on the horizon. The most noteworthy is coming in February next year, when US regulators are expected to issue new pension plan guidelines. This means the $9 trillion retirement fund market will be able to allocate into crypto assets compliantly. This kind of medium-term policy boon is very significant for Bitcoin’s future prospects.

TradFiRefugee · Accepted Answer

Why does it feel like it's the same old lines again, like "there's nothing wrong with the market structure" or "the panic was just scared out of people"... It sounds nice, but those who got liquidated on leverage have already left long ago.

DefiPlaybook · Answer

Quantum computing threat? Ha, that's still a long way off. In reality, leveraged liquidations and whales cashing out are the real culprits right now—the data speaks for itself.

Wait, a $9 trillion pension fund size? If that actually materializes, we’ll need to recalculate everything.

This round of leveraged contracts really went too far. According to on-chain data, concentration of liquidation risk is far above historical averages.

Stop worrying about quantum computing for now—take a look at your own leveraged positions first; whether you get liquidated is right there in front of you.

Before regulatory guidance comes out, this kind of repeated volatility is actually standard. The market structure isn’t broken, it’s just sentiment that’s collapsed.

The seasoned holders are all cashing out, while the new ones are buying the dip. Looking from three perspectives—sentiment, leverage, and supply—it’s actually pretty balanced.

If that $9 trillion really comes in, this little pullback is nothing. The real question is how the follow-up policy will be implemented.

MevHunter · Answer

To put it bluntly, it's just scaring yourself to death. Contract traders get liquidated due to leverage and then blame everything but themselves.

DAOTruant · Answer

To be honest, I just want to know when this 9 trillion will actually flow in, instead of just being talk on paper.

Contract leverage players really need to reflect this time, it’s always like this.

Quantum computing threat? I think that’s still far away from us, haha.

I can understand old investors cashing out, after all, it’s time to take some profits.

Pension fund guidelines only count if they’re really implemented, verbal support is useless.

SerumSquirter · Answer

Talking nonsense about quantum computing again? Using something from 800 years ago to scare people—what a joke.

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Leverage players self-destruct and still blame the market, makes sense.

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9 trillion pension fund? Wake up, everyone. It only counts when the policy actually lands.

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Every time there's "good news," so why am I still losing money?

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To put it simply, it's our own people dumping, nothing surprising.

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When it comes to old investors cashing out, that's true—one by one, they're all leaving.

BrokeBeans · Answer

It’s the same old routine of contract liquidation and cashing out, they play this way every time.

PhantomHunter · Answer

This round of contract liquidations is brutal, leveraged traders really had it coming.

But if that $9 trillion pension fund actually comes in, those of us who got in early will be the real winners—just wait and see.

Quantum computing threat? That's still a long way off... let's deal with what's in front of us first.

It's another round of eating noodles and bread, hold on tight to your coins.

Will we witness a miracle next February? Waiting to see what the US does.