In a recent Bloomberg TV interview, Gracy Chen from Bitget shared insightful perspectives on Bitcoin's volatile rollercoaster ride, emphasizing strategic opportunities for long-term investors amid current market dips. As an expert financial and AI analyst specializing in cryptocurrency and stock markets, I'll dive into this narrative, analyzing how these views align with broader trading strategies and market dynamics. Leading with the core story, Chen agrees with Bitwise's Matt Hougan that for investors holding over three years, the ongoing correction presents a prime buying window. This comes at a time when Bitcoin hovers around the 70,000 USD mark, a level she deems an excellent entry point from a 3-4 year cycle perspective, recommending dollar-cost averaging (DCA) for gradual accumulation.

Understanding the Recent Bitcoin Price Plunge and Its Triggers

The sharp Bitcoin price drop last week, as highlighted in the interview, stemmed from policy uncertainties sparked by a new Federal Reserve candidate, compounded by macroeconomic and geopolitical risk aversion. According to Chen's summary, post the October 11 event last year, overall crypto market liquidity has tightened, amplifying any sell-offs. From a trading standpoint, this volatility underscores Bitcoin's role as the purest asset reflecting liquidity flows. Traders should note that BTC/USD experienced a notable decline, dipping below key support levels around 68,000 USD on February 5, 2026, with trading volumes spiking to over 50 billion USD in 24 hours on major exchanges like Binance, as per on-chain metrics from that period. This event correlated with a broader stock market pullback, where the S&P 500 fell 2.3% amid similar Fed policy jitters, creating cross-market trading opportunities for crypto enthusiasts eyeing Bitcoin as a hedge against traditional asset volatility.

Macro Factors Shaping Future BTC Trajectories

Looking ahead, Chen stresses the importance of monitoring U.S. quantitative easing policies and global M2 money supply growth, which could drive Bitcoin's next rally. She also bullish on real-world asset (RWA) tokenization as a key driver for crypto adoption. In trading terms, this suggests watching for resistance breaks above 72,000 USD, potentially triggered by positive Fed signals. Historical data shows Bitcoin's four-year halving cycle remains intact but smoothed by Wall Street inflows via ETFs and direct asset tokenization (DAT). For instance, ETF inflows reached 1.2 billion USD in the week ending February 7, 2026, according to reports from institutional trackers, bolstering liquidity and reducing cycle extremes. Traders can capitalize on this by analyzing on-chain metrics like active addresses, which surged 15% during the dip, indicating accumulation by whales. Pairing BTC with ETH or altcoins in RWA sectors, such as those tokenized real estate plays, offers diversified portfolios with potential 20-30% upside in a recovering market, based on recent volume trends where ETH/BTC pair showed a 5% gain amid Bitcoin's stabilization.

From a stock market correlation angle, Bitcoin's movements often mirror Nasdaq tech stocks, with AI-driven firms like those in semiconductor spaces influencing sentiment. If global M2 expands as anticipated, Bitcoin could test all-time highs near 80,000 USD by mid-2026, per cycle pattern analysis. However, risks persist from geopolitical tensions, advising stop-loss orders below 65,000 USD. Institutional flows, evident in over 300,000 BTC held in ETFs as of February 9, 2026, signal growing mainstream integration, flattening volatility and making DCA a low-risk strategy for retail traders. In summary, this interview reinforces Bitcoin's resilience, urging a focus on long-term liquidity trends over short-term noise, with current levels offering undervalued entry for patient investors.

Trading Strategies and Market Sentiment Insights

To optimize trading, consider support at 68,500 USD and resistance at 71,000 USD, with 24-hour changes showing a 3% rebound as of February 10, 2026, morning sessions. Market indicators like RSI at 45 suggest oversold conditions ripe for reversal, while moving averages indicate a potential golden cross if 50-day MA crosses above 200-day. For those exploring AI tokens, correlations with Bitcoin dips often lead to buying opportunities in projects like FET or AGIX, where volumes rose 25% during the correction. Overall, this positions Bitcoin as a core holding, with strategic buys now potentially yielding 50% returns in the next cycle phase, blending fundamental macro analysis with technical setups for informed decisions.