The recent decline of Bitcoin is not due to a sudden loss of confidence among everyone, but rather because the amount of money available for buying and selling in the market has decreased. Later, those who borrowed money to speculate on cryptocurrencies could no longer hold on and were forced to sell their coins to pay off debts, causing the price to drop even more sharply. This did not happen all at once; it took three weeks to gradually eliminate the 'unreliable factors'.

What exactly happened?

From January 12 to February 5:

• Step One: Those speculating on Web3 projects in the short term first withdrew their cash (for example, those trading NFTs and small coins ran away when they saw the situation was bad).

• Step Two: The money used to buy Bitcoin through ETFs originally wasn't much in the market, and now it's beginning to flow out (ETFs are like 'Bitcoin funds'; fewer people are buying, and more are selling).

• Step three: Leverage trading tools (like perpetual contracts) have amplified the downward trend (originally a slight drop, leverage forces people to sell more, the more it drops, the more urgent it becomes)

Therefore, the price did not fall randomly; it was the money that was easily scared off, one after another, that withdrew.

A key point that many people did not notice: the market is actually more 'solid' now than it was at 96,000.

At 96,000:

• The market is full of short-term traders of Web3 projects, with money piled up but unstable

• There are particularly many people trading coins with leverage; a slight drop could lead to liquidation

• Whether the market can stabilize depends on whether these people who borrowed money to trade coins can hold on

When it reached 67,000:

• Those who want to flee in the short term have basically run out

• The people who traded coins with leverage have approximately 18 billion USD already 'washed out' (liquidated or sold at a loss)

• The pressure from selling coins through ETFs has also been almost digested by the market

• There are fewer people borrowing money to trade coins in the market now, and instances of mutual踩踏 (trampling upon each other) of rising and falling are also lessened

In simple terms: the 'foundation' of the market is better than before, and it’s not just about saying 'I have confidence' with words.

Why is it important for miners to sell coins?

On February 5th, the amount of coins miners transferred to exchanges suddenly increased (after mining Bitcoin, miners generally hold it until the right time to sell).

This is not inherently a good thing, but it indicates a signal:

Miners usually do not sell coins at the highest prices (it would be a pity to sell then); instead, they rush to sell coins for cash when the price has already fallen significantly and there isn't enough money in the market.

Historically, large amounts of coin selling by miners often occur:

• When the people who borrowed money to trade coins are almost cleared out (after the de-leveraging phase)

• When the available money in the market is almost gone (before liquidity is exhausted)

• After those who were forced to sell coins (like those who got liquidated) have sold out

In other words: miners selling coins is not the beginning of 'crashing the market,' but rather the market saying 'look, the hardest batch of people has already left, and I am slowly digesting the remaining pressure.'

To summarize: what has this wave of decline taught us?

Bitcoin is falling, not because everyone suddenly panicked and sold recklessly, but because:

1. The money that wanted to flee in the short term has withdrawn first (liquidity has decreased);

2. The people who borrowed money to trade coins can't hold on anymore and are forced to sell coins (leverage blew up);

3. Those who were forced to sell coins, one after another, have been cleared out.

This process is now almost over.

Of course, in the short term, it may still drop a little more, but the key is: the market at 67,000 is much healthier than at 96,000—there are fewer people borrowing money to trade coins, easily scared retail investors have run away, and the 'pits' that dropped have already been partially filled.

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This is what falling to the bottom looks like, not what reaching the top looks like.