It is bad news to people who are planning on selling their Bitcoin holdings but for those who wanted to accumulate, the Bitcoin dump is a very good news to them. Here is some of the reason:
1. We all know that Bitcoin is highly volatile so there is a huge possibility that recovery will happen anytime.
2. Those who wanted to buy can buy BTC at a discount. This is also good for DCA.
3. Bitcoin trend is not always downward, once the Bitcoin bull run kick in, those who buy Bitcoin during a dump like this will have a higher profit when Bitcoin starts its record-breaking ATH event.
I don't think it's bad news because before bitcoin was dumped, many people said they wanted bitcoin to fall back to be bought cheaply and finally their wish came true. So I think they were very happy when what they expected happened. But I doubt they will buy bitcoin, or will they be scared and not dare to buy when they see bitcoin falling so fast?
I remember in 2022 when bitcoin dropped to $30k due to Luna crash, and then many expected bitcoin to drop even more to be bought cheaply. And eventually, FTX brought bitcoin down to $15k, but not many people bought in because they were scared and no longer saw it as an opportunity. Many people say they will buy bitcoin, but I really doubt it because there are still many predictions of bitcoin going deeper, which proves that people are more scared than excited to buy.