The market is filled with panic; some are cutting losses and fleeing, while others are quietly positioning themselves. As an investor who has experienced multiple cycles, I want to say: the current pullback is actually a normal part of the mid-term bull market, far from signaling the end of the trend.

In the past few weeks, we've seen Bitcoin fluctuate around the $90,000 mark, with the Fear & Greed Index dropping to an extreme fear level of 25. Retail investors, seeing these numbers, can't help but feel uneasy. But this is precisely the moment that the most savvy market participants are alert to. Markets tend to rally when despair is at its peak.

**Why do I say this rally still has potential? Let me analyze from a few angles.**

The first is macro liquidity. Although the Federal Reserve signaled a tough stance at its December meeting last year, a detail that’s often overlooked is that they are already implementing the "Reserve Management Purchase" plan, injecting $40 billion into the market each month. Meanwhile, the Treasury’s General Account still holds a balance of $9.4 trillion. Once this money starts to flow back into the market, how strong will the liquidity wave be? Historical experience shows that liquidity turning points often precede major rebounds in the crypto market, and this mechanism has only just begun.

The second is the real actions of institutional players. BlackRock’s Bitcoin ETF has become one of its top five revenue-generating products — can a product that’s only been out for a year and a half achieve this? It’s no coincidence. Recent surveys show that 83% of institutional investors plan to increase their crypto allocations by 2025. This isn’t just for a quick trade; they’re here to settle down.

These "smart money" are moving from the periphery to the center. They are not retail traders chasing the market, but institutions deploying real capital for the long term. When institutions become the main players, volatility tends to be extended and smoothed out.

**Short-term panic is actually an opportunity for long-term positioning.**

I see many people choosing to exit at this moment, but my logic is simple: liquidity is improving, institutions are increasing their holdings, and these are solid supports for the continuation of the bull market. When market sentiment reaches extreme fear, it’s often the moment when patient holders can smile.