The cryptocurrency market has shown signs of recovery following a significant sell-off, rebounding from its lowest levels since October 2024. According to Odaily, Bitcoin has climbed above $65,000, while Ethereum has risen from approximately $1,750 to near $1,900. The broader macroeconomic environment remains challenging for risk assets, with recent weakness in tech stocks and a decline in risk appetite. Precious metals and crypto assets have experienced synchronized fluctuations, intensifying the market's deleveraging process, although panic has not entirely subsided. Previously, the options market saw extreme protective buying, with some traders even setting up put options with strike prices as low as $20,000, indicating ongoing hedging against extreme tail risks. Overall, the recent downturn appears to be a phase of leverage clearing and risk preference contraction, with a short-term technical rebound possibly underway. However, the medium-term outlook will depend on macro liquidity, tech stock performance, and institutional capital flows.

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