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2026 Cryptocurrency Allocation Guide: Understanding BTC Flash Crash and SOL's Comeback, Finding the Right Investment Direction for the New Year
The cryptocurrency market at the end of 2025 can be described as a dramatic scene of 'ice and fire'. On one side, Bitcoin's sudden flash crash triggered a massive liquidation of billions, while on the other side, Solana's key upgrade led to a booming ecosystem; institutional giants are busy 'tax harvesting' by selling off while quietly accumulating through ETFs. Behind this year-end market movement lies the core logic of cryptocurrency investment in 2026.#BTC #加密市场观察
The BTC flash crash is not the end of the world, but rather an 'allocation window' for institutions.
The Bitcoin flash crash on December 26 caused $136 million in funds to evaporate instantly, catching both long and short investors off guard. Many believed the bull market had completely extinguished, but overlooked the key seasonal factor of 'year-end tax loss harvesting'—investors sell underperforming crypto assets to offset gains from other assets, thereby reducing their tax burden. This operation was amplified in the low liquidity market at year-end, leading to short-term price fluctuations.
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