December 11th Bitfinex Alpha | Bitcoin is consolidating its position at the $100,000 threshold.
On Bitfinex Alpha
Bitcoin reached a historic milestone last week, surpassing $100,000 for the first time and hitting an all-time high of $104,000. This is a 111% increase over the summer low of $50,000. However, this dramatic breakout was followed by a sharp correction of 14.84%, including a sharp 10% drop in just 8 minutes. This is the steepest decline from record highs since the pre-election selloff. The correction triggered liquidations of more than $1.1 billion, $419 million of which came from long Bitcoin positions, indicating a high level of leverage in the market.
Despite major fluctuations, the market is gradually showing signs of stabilization. The Realized Profits Index, which once peaked at $10.5 billion a day, fell to $2.5 billion, easing selling pressure. Futures interest rates have also returned to normal, signaling a decrease in the level of speculative leverage. And although ETF inflows slowed somewhat late last week, they remained an important source of support as long-term holders continued to post profits. The medium-term outlook remains optimistic with Bitcoin hovering around $100,000, and the bullish momentum is likely to continue as long as ETF inflows continue as funding rates normalize and selling pressure decreases.
The latest economic data from the United States last week showed somewhat mixed results, but overall the economy appears to be continuing to recover. The economy added 227,000 jobs in November, a number of new jobs that exceeded expectations despite the disruption caused by October’s storms. However, the unemployment rate rose slightly to 4.2%, showing that labor mobility is still continuing. Hiring in October soared to 7.74 million, reflecting employers’ caution due to unstable economic conditions, and although the actual number of hiring has slowed, demand for labor remains high. Meanwhile, the services sector recorded its 51st consecutive month of growth in November, albeit at a slower pace, with a PMI of 52.1, driven by strong consumer spending and wage growth. Inflationary pressures persist, but easing supply chain bottlenecks and strong year-end expectations point to stabilization.
The economy is supported by a resilient labor market and steady consumer demand as the Federal Reserve evaluates potential policy changes from the incoming administration. However, uneven recoveries across sectors indicate the need for cautious optimism.
Last week, South Korea experienced a cryptocurrency trading boom, with $34 billion worth of transactions recorded in just 24 hours on the country’s major exchanges. This happened after President Yoon Seok-yeol declared martial law. The political turmoil led to panic selling and platform outages, highlighting the market’s sensitivity to geopolitical turmoil. Bankruptcy Gox also moved $2.4 billion in Bitcoin to a new wallet just as Bitcoin passed $100,000 for the first time. And Grayscale joined the race to launch the Solana ETF and filed to convert the Solana Trust as SOL prices soared. These events demonstrate the dynamic interplay of political, regulatory, and historical factors shaping the evolving cryptocurrency landscape.
This is the summary of Bitfinex Alpha Issue 134. Hope you have a great trading week!
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