Bitcoin's price demonstrated a significant rebound, climbing back above $71,000 after experiencing one of the sharpest sell-offs in its current cycle, which briefly pushed its value toward $60,000. This recovery is largely attributed to institutional investors, who are reportedly viewing Bitcoin prices below $70,000 as a fresh buying opportunity, contrasting with retail traders who are still seeking definitive signs of a market bottom.

Hunter Horsley, CEO of Bitwise, observed this divergence in investor sentiment during a CNBC interview. He noted that while long-time holders might feel uncertain, the new wave of institutional investors is perceiving this pullback as a renewed chance to enter the market at previously missed price levels. Horsley suggested that Bitcoin has been caught in a broader, macro-driven sell-off affecting various liquid risk assets, presenting a unique opening for these larger players.

Conversely, retail participants have been actively scrutinizing the market for signals indicating the exhaustion of the sell-off. A report from sentiment platform Santiment highlighted that retail traders are