PANews reported on March 29th, citing CoinDesk, that after Bitcoin reached its all-time high of $127,000 in October 2025, the market quickly corrected to around $60,000 in the first quarter of 2026. While the volatility was significant, this was essentially a normal adjustment process driven by cyclical deleveraging and liquidity contraction. From a cyclical perspective, 2026 may exhibit a "multi-stage recovery": a bottoming out and deleveraging at the beginning of the year, a mid-term rebound, and a potential period of consolidation before entering a more sustainable upward trend. Similar patterns have occurred multiple times in previous crypto cycles. Currently, a defensive portfolio is recommended, gradually increasing risk exposure as liquidity improves. 2026 is more likely to be a "transitional year" than a one-sided bull or bear market, but this "reset" may lay the foundation for the next upward cycle.

Analysts believe that the current pressure on the crypto market stems primarily from tightening global liquidity, including factors such as the Federal Reserve's balance sheet reduction, a stronger dollar, the diversion of funds to IPOs, and increased pressure on the credit market. Against this backdrop, crypto asset prices often decouple from fundamentals in the short term, using declines to complete market clearing and cyclical resets.