The start of the year has indeed been quite intense. Bitcoin dropped from yesterday's high of $94,420 to $91,048 today, a 24-hour decline of 2.38%, with a low even touching $90,601. The $92,000 level was directly broken through, and the bearish momentum is clearly strong.

Even more exaggerated, this plunge triggered a total of $440 million in liquidation across the entire network. Compared to the New Year's wave when it fell from $89,000 to $87,000, with only $228 million liquidated, this time the volume has doubled, indicating significant leverage risk among holdings.

Why did the sudden sell-off happen? The core issue is that the price can't go up anymore. Previously, it was driven up by expectations of Federal Reserve rate cuts and liquidity easing, but during the ascent, there wasn't much incremental leverage following, and the momentum was severely lacking. Once it reached the resistance around $94,000, profit-taking quickly fled. Plus, the aftershocks from the December 23 options expiration are still fermenting, making the entire market quite weak—once it drops, a collapse is easy.

The news environment itself is quite tangled. On the positive side, Morgan Stanley stated it would not exclude stocks holding crypto assets, and Bank of America is also encouraging financial advisors to recommend Bitcoin ETFs. Institutional entry actions haven't stopped. But the negative factors are quite real—BTC has fallen nearly 28% from its high of 126,000 on October 12 last year, with over 22% drop in December alone, indicating market confidence has not yet recovered. There's also the issue of the Federal Reserve chairperson appointment, which directly affects the future direction of liquidity policies.

Currently, the bulls and bears are fighting fiercely. The options market is full of put options at 85,000 and call options at 100,000, and institutional target prices vary widely—some calling for 150,000, others remaining bullish but cautious. MicroStrategy and similar institutions have also paused their regular BTC purchase plans, adding to the market’s uncertainty.