Today’s rollercoaster in the crypto world—“sharp drop during the day, violent surge at night”—is essentially a sudden geopolitical black swan event combined with institutional bottom support, triggering a battle between bulls and bears.

Peeling back the complex candlestick patterns, the core reasons mainly include the following three points:
1. Immediate trigger: Unexpected developments in US-Iran talks, risk aversion sharply switching
Drop during the day (sudden negative shock): Over the weekend, market rumors of easing US-Iran negotiations boosted risk appetite. But early this morning, the situation suddenly changed, with President Trump publicly stating Iran’s response was “completely unacceptable,” and Iran also took a tough stance. Geopolitical conflict fears instantly ignited, causing panic sentiment that briefly pushed Bitcoin below $80k, leading to a rapid downward sell-off.
Nighttime surge (exhaustion of negative factors): The crypto market’s sensitivity to geopolitical news is waning. After a brief digestion of panic, funds quickly refocus on technical and capital flow logic, triggering a strong rebound at night, with Bitcoin rising steadily past $82,000.
2. Internal engine: Institutional “bottom support” frenzy and short squeeze “pushing and squeezing”
Institutional strong support: Recently, Bitcoin spot ETF funds have been continuously inflowing, with weekly inflows exceeding $1 billion. Wall Street giants like BlackRock have been aggressively accumulating near $80k, forming a strong bottom support. The downside space is tightly sealed.
Shorts face annihilation: Driven by institutional buying, Bitcoin broke through key resistance levels, triggering stop-losses and liquidations of many short positions. This “buy more as it rises” (short squeeze) passive buying directly accelerated the vertical surge at night. In the past 24 hours, over 90k high-leverage contracts have been wiped out across the network.
3. Hidden manipulators: “Targeted liquidations” before Friday’s options settlement
This Friday (May 12) is the monthly options expiration day. Currently, a large portion of options positions are concentrated between $80,000 and $85,000. Major funds have significantly shaken out positions at this level, aiming to liquidate all extreme orders on both sides, thereby facilitating a smooth transfer of positions with minimal resistance and preparing for a one-sided trend after settlement.
💡 One sentence summary:
Today’s wild swings—“geopolitical surprise + institutional support + pre-expiry options shakeout”—are a combined double-edged battle between bulls and bears. In this critical moment of narrow-range oscillation and directional choice, high-leverage contracts are akin to walking on a knife’s edge. Less action and more observation, protecting spot holdings, is the best survival strategy amid chaos. #BTC