According to ChainCatcher's message, Bitfinex has released a report stating that "Bit is nearing the historic $100,000 mark, driven by unprecedented inflows of capital into Bit ETFs and strong institutional demand. Although it encountered profit-taking resistance at its latest all-time high, Bit has shown resilience, holding around $96,000 over the weekend and regaining some of its upward momentum in early Monday trading. Bit has risen 47% since the pre-US presidential election low of $66,880, and an astonishing 130% year-to-date, breaking new ground. Bit's performance relative to traditional assets is undeniable: Bit's market capitalization has now surpassed Saudi Aramco, making it the world's seventh-largest asset, with a valuation exceeding $1.9 trillion at its peak.
Although Bit's upward momentum is remarkable, it is not without profit-taking by long-term holders. While the pressure has increased, it remains manageable compared to the historical highs of March 2021 and March 2024. These trends suggest that the market momentum has temporarily stalled, but the overall market may absorb the selling pressure and continue to rise in the medium term.
The overall cryptocurrency market (excluding Bit and Ethereum, known as the Total3 index) has also reached a new cycle high, with a surge in investor sentiment driving a 23.2% rally in the Total3 index from low to high last week - the largest since April 2021. Large-cap Altcoins, such as Solana (SOL), have reached new all-time highs, indicating they have broken through key resistance levels, including the April 2022 high.
The Altcoin market capitalization is now approaching the $984 billion peak of May 2021, suggesting that speculative capital is shifting from Bit to Altcoins. Historically, such capital rotation often heralds the arrival of an "Altcoin season," where Altcoins outperform Bit.
In fact, the annualized financing rates for large-cap Altcoins have surpassed the 45% threshold, indicating an intensification of speculative activity. With increased participation by retail investors, short-term volatility is expected to rise, further fueling the momentum of Altcoins. However, these conditions also require caution, as extreme financing rates often signal the potential for a violent market correction.
