Bitcoin is approaching the historic milestone of 100,000 USD with incredible strength thanks to a huge cash flow very much from Bitcoin ETFs and strong demand from groups. Despite taking profit-taking pressure near $99,334 – its all-time high – BTC showed incredible resilience, holding steady near $96,000 throughout the weekend, before recovering strength to Monday's early trading session. With a 47% increase from its pre-election low of $66,880 and an incredible 130% year-to-date gain, BTC is making history itself. Better performance of BTC compared to traditional assets is undeniable: Bitcoin is now to overtake Saudi Aramco in terms of market capitalization, it has the seventh largest asset globally, with a peak valuation exceeding $1.9 trillion and is it is far above gold and silver relatively in this quarter.
Although the rise of Bitcoin is amazing, it is not always “smooth”, the Long-term holders (LTH) have taken some profit. More than 461,000 BTC has been “released” to the market since breaking the all-time high of $73,666 last month, as LTH took advantage of profits well above its true value of $24,912. Although there is more distribution pressure, it remains subdued compared to historical peaks March 2021 and March 2024. These developments show that the growth trend is slowing down for a while, but positive for the market in general and likely to accept selling pressure to continue rising in the medium term.
The cryptocurrency market in general, without Bitcoin and Ethereum is called Total3 technical index analysis, too level of access new high in the cycle, driven by strong investor sentiment. Total3 surged 23.2% to record highs last week – the biggest increase since April 2021. Large-cap altcoins, such as Solana (SOL), has reached an all time new level, marks a historic turning point as they break through key resistance levels, including the April 2022 highs.
The altcoin market capitalization is currently approaching a May 2021 peak of $984 billion, showing movement of speculative capital from Bitcoin to altcoins. Historically, such circulation has marked the beginning of the “altcoin season,” a period characterized by superior growth of altcoins relative to Bitcoin.
That's right, as the annual funding rate for large-cap altcoins crosses the 45% threshold, indicating Speculative activities are heating up. As retail investor participation increases, volatility is expected to increase in shorter time frames, fueling more altcoin momentum. However, these situations are very cautious, as very high funding levels often warn of sharp corrections.
The US economic landscape is also currently being shaped by mixed signals, with mixed data from consumer sentiment, manufacturing activity and the housing market, showing a mix of optimism and concern. Consumer psychology increased to 71.8 in November, due to post-election Republican optimism, despite long-term inflation expectations increased to 3.2%expressing concerns about his policies. Manufacturing activity cooled, with a total activity index has decreased to -5.5but positive trends in orders and employment, together with expectations of strong future growth suggest resilience. The housing market is the opposite great challengeswith an October decline in housing starts and building permits due to high mortgage rates and hurricane foreclosures, exacerbating the nation's housing shortage. These trends indicate hope in some sectors but ongoing structural challenges in others.
In crypto news last week, the SEC delay decision on Franklin Templeton's BTC-Ethereum hybrid ETF proposal, despite approval to include BTC ETF options. Meanwhile, Korea plan introducing a 20% crypto capital gains tax by 2025, but increasing the exemption threshold to 50 million won (~$35,919) to reduce the impact on small investors. Legislative votes are expected this month. And as mentioned, Cboe will edit Currency based options will be linked to see Bitcoin on December 2nd, providing effective tools for price exposure and risk management. These developments highlight the growing penetration of cryptocurrencies into mainstream finance.
And that's the summary from Bitfinex Alpha 132. Wishing you a great trading week!
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