Analysis: After the sharp decline, market sentiment has warmed up, and BTC has started to rebound after hitting the low

The cryptocurrency market has experienced a phase of recovery after a sharp sell-off, rebounding above $65,000 after hitting a low point, while Ethereum has risen from around $1,750 to near $1,900.

On a macro level, the overall pressure on risk assets remains the main backdrop. Recently, technology stocks have weakened, and there has been a decline in risk appetite, while precious metals and crypto assets have fluctuated in sync, further exacerbating the market's deleveraging process. However, panic sentiment has not completely dissipated. Previously, the options market saw extreme protective buying, with some traders even positioning for put options with strike prices as low as $20,000, indicating that the market is still hedging against extreme tail risks.

Overall, this round of sharp decline reflects more of a phase of recovery after the clearing of leverage and a contraction in risk appetite. A short-term technical rebound may have occurred, but the mid-term trend still depends on macro liquidity, the performance of technology stocks, and the flow of institutional funds.