Opinion: The crypto market plunged due to insufficient liquidity over the weekend. If the situation eases, it is expected to rebound quickly

Due to the low liquidity and the closure of the US stock market on weekends, all the panic emotions can only be released in the cryptocurrency market, $BTC, so there is an oversell. From a timing point of view, the main sell-off occurred during the US Eastern trading session, and the reaction of Asian and European investors was relatively mild. On the contrary, there were several signs of rebound in the Asian time zone. This sentiment amplification is essentially caused by insufficient liquidity. If it were a normal working day, the decline would not necessarily be so severe. Although geopolitical conflicts have pushed up oil prices, this has limited impact on the Federal Reserve. Powell has previously made it clear that the oil shock is a short-term disturbance. What the market is really concerned about now is still Trump's tariff policy. Structurally, this round of decline is highly similar to the tariff panic in February. If the incident eases, the market is expected to rebound quickly. BTC's support in the range of $93,000 to $98,000 remains solid, and there is no sign of panic collapse on the chain. Next, it depends on whether Asian investors choose to buy the dips or continue to panic and leave after the CME opens.