BlockBeats News, October 7th – Legendary investor Paul Tudor Jones recently pointed out that the combination of the Fed’s restart of loose monetary policy and a massive fiscal deficit could lead to a more intense stock market rally than in 1999. He expects the short-term market to maintain strong momentum, but warned that the market is entering a high-risk phase in the late stage of the bull market. From a macro perspective, the resonance of loose policy and fiscal deficit implies ample liquidity, with risk assets once again becoming a safe haven for funds. The continuous rise in the valuation of AI and tech stocks is driving funds overflow into inflation-resistant assets such as Bitcoin and gold.
However, similar to 1999, the speculative atmosphere has also led the market into a stage of “prosperity and anxiety coexisting,” with volatility and valuation expansion appearing simultaneously. In the crypto market, the BTC liquidation price is mainly concentrated in the $107k-$108k and $121k range, with the current price around $124k. The short-term support is seen around $112,000, with a secondary support at approximately $100,000; the upper liquidation hotspot and pressure zone are around $126,000. If retail FOMO sentiment intensifies, BTC may quickly test the upper pressure zone, but the risk of a liquidation cascade will also increase in tandem, and short-term volatility is expected to significantly increase.
Bitunix Analyst View: The core logic of this bull market has shifted from being “fundamentally driven” to being “liquidity and sentiment-driven,” with the market’s faith in AI and loose policy driving prices to overheat. The key question that investors need to consider is not “whether to participate,” but “when the risk begins to outweigh the reward.” The climax of this speculative feast is often a prelude to a market structural reversal. BTC needs to pay close attention to the $126,000 liquidation pressure and the $100,000 support level, while also implementing proper risk management.
