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VanEck: Bitcoin pullback is a cyclical adjustment, and global Liquidity still dominates price movement.
[VanEck: Bitcoin pullback is a cyclical adjustment, global Liquidity still dominates price movement] VanEck released an on-chain report for Bitcoin in mid-October 2025, with three core points from mid-September to mid-October as follows: Liquidity drives market cycles The growth of global M2 money supply still explains more than half of the Bitcoin price fluctuations, reinforcing Bitcoin's role as an asset that counteracts currency debasement. Over the past year, the Asian trading session has dominated price discovery, indicating that regional liquidity tightening is driving recent market volatility. Leverage washout creates opportunities Bitcoin futures open interest reached a high of $52 billion at the beginning of October, followed by consecutive liquidations that caused Bitcoin to drop about 18% in early October. Currently, leverage has fallen back to the 61st percentile, and the price of Bitcoin relative to gold is close to a one-year low. We believe this is a mid-cycle adjustment rather than the start of a bear market. On-chain data reflects market maturity The revenue and price of major public chains (L1) show a strong correlation, and Bitcoin Treasury continues to be accumulated by institutions, indicating that the Bitcoin ecosystem is maturing and reinforcing its important position in asset allocation models.