Bitcoin’s supply-demand imbalance and inflows from ETFs drive price strength. Market sentiment remains bullish with rising accumulation. Technical tools like volume profile and on-chain supply metrics provide insights into demand zones and potential price ceilings for strategic positioning.
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ETH and DOGE prices often correlate positively with Bitcoin but can diverge due to unique factors. Portfolio diversification should consider these relationships to optimize risk-adjusted returns.
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The July 2nd crypto market crash and massive long liquidations reinforce investor risk aversion significantly. Over $3 billion in long positions wiped out creates a vicious cycle: margin calls force selling, depressing prices further, while traders reduce leverage (futures open interest drops 30–40%). This experience ingrains caution—investors may avoid high-leverage trades, prefer stablecoins during volatility, and demand higher risk premiums for altcoins. Surveys show 55% of traders became more risk-averse post-crash, with 40% reducing crypto allocations. This sentiment could persist for 1–3 months until new positive catalysts emerge, as seen in post-2022 crash risk aversion cycles.
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