According to Woofun AI, CryptoQuant analyst Woo Minkyu pointed out that Bitcoin's recent 30% rise in stock prices was not driven by rising leverage, but was due to new capital entering the market. This phenomenon revealed the essential difference between the current rebound and previous borrowing funds driving the market.
According to data compiled by Woofun AI, this stable support composed of own funds is significantly different from the risk of a sharp pullback caused by liquidation of positions driven by leverage. When the rebound relies on borrowing funds, the market structure is extremely weak, amplifying gains and increasing losses; while current investors invest their own capital, reflecting their true intention and confidence to buy, providing a more stable foundation for price increases. This stability is critical for traders and investors who follow Bitcoin's trend.
Against the backdrop of uncertainty in the current overall economic environment, Bitcoin has shown strong resistance to falling. The inflow of capital may stem from institutional adoption of Bitcoin, improvement in market sentiment, or people's search for alternative assets.
However, despite the current data being optimistic, investors still need to be cautious and fully consider potential risk factors such as changes in regulatory policies and changes in the macroeconomic situation. These factors can change market conditions at any time and affect long-term trends.
Determining whether the rebound was driven by leverage or actually from capital inflows is critical to assessing market risk. If this rebound is indeed supported by fresh capital, it may be more sustainable, but this is not an absolute guarantee. Investors should use this information as part of an overall analysis, rather than the sole basis for judgment, and make decisions based on many factors to deal with the uncertainty brought about by market changes.