**[Analysis: Crypto Market Needs a "Reset Period" to Kickstart the Next Bull Run]** Odaily Planet Daily reports that after Bitcoin reached an all-time high of $127,000 in October 2025, the market experienced a sharp correction in Q1 2026, retreating to the $60,000 range. Despite the intense volatility, this is essentially a normal adjustment process characterized by cyclical "deleveraging + liquidity contraction." Analysts believe the current pressure on the crypto market primarily stems from global liquidity tightening, including the Federal Reserve's balance sheet reduction, a stronger US dollar, capital diversion due to IPO fundraising, and rising stress in credit markets. Against this backdrop, crypto asset prices often temporarily "decouple" from fundamentals, with market downturns facilitating a clearing process and a cyclical reset. From a cyclical perspective, 2026 may exhibit a "multi-phase recovery": bottoming out and deleveraging at the start of the year, followed by a mid-year rebound, and potentially another period of volatility before entering a more sustainable upward trajectory. Similar patterns have been observed in previous crypto cycles. At this stage, a defensive allocation strategy is recommended, with a gradual increase in risk exposure as liquidity conditions improve. 2026 is more likely to be a "transitional year" rather than a unilateral bull or bear market. However, this round of "reset" could lay the foundation for the next upward cycle. (Interactivecrypto)