K33 "Market reset after extreme liquidations… entering a healthy recovery phase"

After last week's large-scale derivatives liquidation event, analysts say the cryptocurrency market has entered a more "healthy phase."

On the 15th (local time), The Block reported that K33 Research said in a report, "The recent large-scale liquidations are a reset process for an upswing," adding, "Excessive leverage is being removed and a new foundation for an upswing is being built." It added, "Short-term liquidity will contract, but historically short-term downturns have often been the starting point for long-term rebounds."

It also said attention should be paid to buying opportunities. The report said, "This correction is likely to become a positive 'buying opportunity' when combined with the macro environment such as expectations of rate easing, increased institutional demand, and ETF approval momentum." It went on, "Now is a good time for market participants to recover liquidity and reallocate capital," and predicted, "Once the liquidations of Bitcoin perpetual futures conclude and funding conditions normalize, the market will resume a gradual uptrend."