Bitfinex Releases Its 134th Alpha Report
According to the Bitfinex Alpha Report, after reaching an all-time high of $104,000 last week, Bitcoin experienced a sharp correction, losing 14.84% of its value, resulting in over $1.1 billion in liquidations. Despite market volatility, the normalization of funding rates, a decrease in selling pressure, and continued ETF inflows maintain a medium-term bullish outlook.
The 134th Alpha Report published by Bitfinex indicates that Bitcoin reached a historic point last week, surpassing $100,000 for the first time and hitting an all-time high of $104,000. This marks a 111% increase from the lows below $50,000 set in the summer. However, this increase is followed by a sharp correction of 14.84%, including a rapid 10% drop within just eight minutes, which highlights the market's leverage levels, triggering a total liquidation of over $1.1 billion, including $419 million from Bitcoin long positions.
Signals of stability in the Bitcoin market and a resilient outlook for the U.S. economy continue to emerge. Despite the volatility, signs of stability are also appearing in the market. The profit metric peaked at $10.5 billion, subsequently declining to $2.5 billion, easing selling pressure. The normalization of futures funding rates indicates a reduction in speculative leverage. While ETF inflows slowed toward the end of last week, they continue to serve as a critical support source amid ongoing long-term investor profitability. As Bitcoin consolidates above $100,000, the medium-term bullish outlook remains intact, with potential for increased upward momentum, conditioned on the continuation of ETF inflows and a slowdown in selling pressure.
Recent U.S. economic data presented mixed results last week, yet overall, it suggests that the economy continues to show resilience. Although inflationary pressures persist, alleviation of supply chain bottlenecks and strong year-end expectations signal stability.
In cryptocurrency developments, a significant surge in crypto transactions amounting to $34 billion was recorded within just 24 hours at leading Korean exchanges following South Korean President Yoon Suk-yeol's declaration of martial law. Political unrest emphasizes the market's sensitivity to geopolitical instability, leading to panic selling and platform outages. The bankrupt Mt. Gox exchange transferred $2.4 billion worth of Bitcoin into a new wallet just as Bitcoin first surpassed $100,000. Grayscale has applied to convert its Solana Trust, aiming to launch a Solana ETF, thus entering the competitive race alongside SOL gains. These events illustrate the dynamic interplay of political, regulatory, and historical factors shaping the evolving crypto landscape.