Analysis: The crypto market needs to go through a "reset period" before a new bull market can begin.

Odaily Planet Daily News - Since Bitcoin reached an all-time high of $127,000 in October 2025, the market quickly corrected to around $60,000 in the first quarter of 2026. Although the volatility was severe, it essentially belongs to a normal adjustment process of cyclical “de-leveraging + liquidity contraction.” Analysts believe that the current pressure on the crypto market mainly stems from global liquidity tightening, including factors such as the Federal Reserve’s balance sheet reduction, a stronger dollar, IPO financing diverting funds, and rising pressures in the credit market. In this context, crypto asset prices often “decouple” from fundamentals in the short term, completing market clearing and cycle resetting through declines.

From a cyclical structural perspective, 2026 may present a “multi-stage recovery”: a bottoming out and de-leveraging at the beginning of the year, a mid-term phase of rebound, and a potential return to fluctuations before entering a more sustainable upward channel later, a similar rhythm that has appeared multiple times in past crypto cycles. The current phase should maintain a defensive allocation, gradually increasing risk exposure after liquidity improves. 2026 is more likely to be a “transitional year,” rather than a one-sided bull or bear market, but this round of “reset” may lay the foundation for the next upward cycle. (Interactivecrypto)