BIT: Without a clear catalyst, it is highly likely that Bitcoin will continue to fluctuate within a certain range in the short term Odaily Planet Daily News: BIT released a chart today stating that Bitcoin is often classified into two types of assets: one is a hedge against inflation, and the other is a high beta risk asset that fluctuates in the same direction as technology stocks. Both narratives can partially explain the performance, but they are not enough to fully cover the price logic of Bitcoin. In contrast, we tend to understand Bitcoin from the perspective of liquidity environment and capital flow. Looking back at history, during periods of ample liquidity and lower funding costs, Bitcoin typically performed stronger; When liquidity tightens, the trend tends to be under pressure, corresponding to changes in interest rate expectations and actual inflows and outflows of funds. Recently, Bitcoin has shown strong stability. Whether it is the upward revision of interest rates or geopolitical events, they have not had a sustained impact on prices. This to some extent reflects that the current market participation is still cautious, and there is no clear trend in transactions and fund flows. Bitcoin's sensitivity to short-term fluctuations in inflation expectations and broader risk preferences has also decreased. After experiencing a deep pullback from the peak in the fourth quarter of 2025, the current market position has generally returned to normal. In the absence of a clear catalyst, Bitcoin is likely to maintain range bound volatility in the short term. However, for investors who understand the laws of history and are able to lay out their positions when news disturbances are frequent and actual volatility is still low, such an environment still means opportunities.