Bitcoin experienced a dramatic drop of over 20% this week, catching many crypto fund managers by surprise. Although the price has partially rebounded, the sudden decline has been attributed to a rapid shift in market sentiment and panic selling, leading to chain liquidations. Zaheer Ebtikar of Split Capital noted the unexpected speed of the market collapse, while Ray Hindi of L1D AG highlighted the impact of overextended traditional finance themes and unresolved structural issues from a previous liquidation event. The non-Bitcoin token market has been in a bear market since December 2024, with altcoin performance remaining weak. Cosmo Jiang of Pantera Capital described the ongoing trend as a "rolling bear market" affecting most altcoins. As pressure mounts on risk assets, selling has intensified, with traders liquidating crypto holdings to meet margin requirements. Investment managers are now focusing on high-quality, fundamentals-driven investments, with expectations for altcoin outperformance remaining low. Joscha Kuplewatzky of Wintermute Ventures suggested that without renewed retail investor activity, any market rally is likely to be short-lived and sector-specific.