Matt Hougan, the chief investment officer at Bitwise, has pointed out that the recent selloff in the Strategy Bitcoin ETF (STRC) is a classic sign of “end‑of‑cycle” deleveraging. In other words, the ETF’s decline is part of a normal pattern that often precedes a market bottom, according to industry analysts. For everyday traders, this means the market may be in a phase of tightening rather than outright collapse.
Bitcoin is currently trading around $61,300, up roughly 4.5 % in the last 24 hours. While the price move is encouraging, the fear‑greed index sits at 19, classified as “Extreme Fear.” This indicates that the broader market remains cautious, even as Bitcoin shows signs of recovery. The combination of a bullish price move with a still‑high fear level suggests that the market is on the cusp of a potential bottom but has not yet fully stabilized.
Other market signals reinforce this view. Crypto‑lending volumes have fallen to $23.3 B, with Tether dominating 68 % of the CeFi loan market in Q1, pointing to a tightening of liquidity. Meanwhile, smaller tokens are leading the charge as Bitcoin and Solana rally in what analysts call the “first real bounce of the selloff.” These dynamics hint that the market is still adjusting, and that a broader rebound could be on the horizon if liquidity improves.
For retail investors, the key takeaway is to monitor liquidity indicators and watch how the market responds to central‑bank tightening. A sustained increase in Bitcoin’s price, coupled with a gradual easing of fear levels, could signal that the bottom is near. Keep an eye on the next few weeks for any signs of a more robust recovery.