On June 2, Bitfinex released a report stating, "Bit is experiencing its first significant pullback since the April low, following an almost uninterrupted 50-day rally that saw its price surge from $74,501 to a historic high of $111,880, an increase of over 50%. This pullback marks a change in the upward momentum and is not merely a technical adjustment—it is also influenced by macro environmental pressures. The unexpected restoration of tariffs by the US government led to the 30-year US Treasury yield breaking through 5%, triggering a market risk sentiment shift towards 'risk-averse mode'.
Meanwhile, the Bit derivatives market is showing signs of overheating. The options open interest has risen to a record $49.4 billion, indicating increased institutional activity and hedging and speculative behaviors following Bit's historic high. This position structure suggests market expectations of increased future volatility and potential further macro headwinds and structural profit-taking pressures. On-chain indicators also confirm this: the relative unrealized profit has broken through its +2 standard deviation zone, entering an area historically viewed as 'market frenzy', typically signaling intense intraday volatility or a local top.
Despite the pullback, we still believe Bit's structural strength remains intact. This adjustment is more like a healthy reset rather than a trend disruption—primarily triggered by leverage clearing and high-level profit-taking, occurring after the most intense rally in crypto history."
