Why is Bitcoin still in turbulence? Will Clemente reveals the dynamics behind the current volatility

The Current Market Reality

Bitcoin is once again experiencing the ups and downs characteristic of the cryptocurrency market. Recently, it reached highs of $44,715, but has since retraced significantly. It is currently trading around $87.26K, with notable fluctuations in recent sessions. This volatility does not surprise experienced analysts, especially considering the speed at which the market has grown in recent months.

Will Clemente’s Analysis: Understanding the Drops

Will Clemente III, a renowned on-chain analysis expert and co-founder of Reflexivity Research, has offered valuable insights into these movements. According to Clemente, pullbacks are expected events when an asset experiences significant growth without intermediate corrections.

His main argument is that Bitcoin nearly doubled its value in a two-month period without experiencing substantial declines. In such contexts, a correction is not an anomaly but a natural event that “cleans” the market. Cleans of what? Of what Clemente calls “weak hands” and excessive leveraged positions.

Disassembling Leveraged Positions

Traders operating with leverage—that is, borrowing funds to amplify their exposures—are particularly affected during corrections. When prices fall, these operators face forced liquidations, which accelerate the decline and create panic.

Will Clemente emphasizes that these market shakeouts, although uncomfortable, serve an important function: they build a more solid foundation for sustainable bullish movements. Investments made after a correction tend to be more rational and less speculative, improving the overall quality of market participants.

Volatility: Feature, Not Flaw

A crucial point in Clemente’s comments is his insistence that Bitcoin’s volatility is inherent to its nature, not a weakness. Investors seeking absolute stability are simply in the wrong market.

His practical recommendation is clear: keep Bitcoin in cold storage (offline) as a long-term strategy, and avoid excessive leverage in short-term trades. These measures protect against systemic risk as well as impulsive decisions during turbulence.

The Broader Sector Perspective

Beyond technical analysis, specialists like Meltem Demirors from Coinshares observe that this rally in the cryptocurrency market represents a remarkable recovery after the challenges of previous years. Bitcoin is regaining confidence after a period of bankruptcies, frauds, and regulatory pressures that hit the sector hard.

Demirors describes the current trend as “the most rejected rebound,” suggesting that skepticism persists despite concrete growth facts. However, she identifies real catalysts: potential changes in monetary policies, concerns over fiscal deficits, and renewed interest from retail investors.

Positive Signals Moving Forward

The sector is experiencing sustained increased interest from institutional and retail investors. Reports show significant trading volumes on crypto platforms, and Bitcoin ETFs continue gaining traction. Ahead of the upcoming Bitcoin halving event, many analysts anticipate positive impacts on price dynamics as the mined daily supply decreases.

The volatility that terrifies newcomers is exactly the characteristic that provides opportunities to informed investors. Will Clemente and other analysts agree that understanding these cycles is essential to navigating the cryptocurrency market more successfully.