Nearly $600 million in liquidations, Bitcoin plunged to $90,500 this morning.
Author: Shaofaye123, Foresight News
After Bitcoin rose to $100,000, it experienced a sharp downward plunge this morning, with around $600 million in 24-hour liquidations. The CMC Altcoin Season Index rose to 88, and the market has been rising for nearly 100 consecutive days, entering a critical moment.
Bitcoin plunged to $90,500
Yesterday, after BTC broke through $100,000, it fell sharply in the evening. At 6:28 am on December 6th, the BTC/USDT pair experienced an extreme plunge, with BTC briefly dropping to $90,500. There were $477 million in 12-hour liquidations, mainly long positions, reaching $410 million. It has now gradually recovered to $97,860, and other Altcoins such as ETH have also gradually recovered after a short-term correction.
Bitcoin spot ETF data can help understand the trend of off-exchange capital. When there is a large net inflow, the buying pressure increases, and the possibility of a Bitcoin price increase is greater. According to SoSovalue data, Bitcoin spot ETFs are still in a state of continuous net inflow, but the inflow amount is gradually decreasing. After a series of increases, the Bitcoin funding rate reached a high point on December 5th, and has now declined with the liquidation of long leveraged positions, indicating that the market's bullish momentum has weakened.
In addition, on the morning of December 6th, US President-elect Trump announced that he will appoint David O. Sacks as the White House's AI and Cryptocurrency Supervisor. As a crypto-friendly figure, David O. Sacks has shown unwavering belief in crypto since the early years. In 2018, David O. Sacks also joined the advisory board of the decentralized trading protocol 0x. With David O. Sacks taking office, Bitcoin may surge again.
The Microstrategy company, which is strongly correlated with Bitcoin, is also expected to be included in the Nasdaq-100 Index, thereby entering the world's largest ETF: QQQ, which will bring passive capital inflows to MSTR. Currently, MSTR has met all the conditions for inclusion in the Nasdaq-100 Index, and its market capitalization ranks 66th among the eligible companies, and the top 75 companies will be automatically included in the Nasdaq-100 Index.
Altcoin rally continues, AI sector sees broad gains
Although BTC experienced a plunge yesterday, Altcoins did not see a significant decline, and market sentiment remains optimistic, with the Greed Index reaching 72.
On December 6th, the official OpenAI conference was held, releasing the full version of o1 on the first day, and also providing the o1 Pro Mode. o1 has made breakthrough progress in three key areas: solving difficult math problems, programming ability testing, and complex scientific problem analysis. Compared to the preview version, various indicators have generally increased by more than 40%. Version updates will continue to be released over the next 12 days.
Possibly influenced by the positive news from the OpenAI conference, the AI sector has seen a broad rally. According to SoSovalue data, the AI sector saw widespread gains yesterday. According to Bitget's market data, JASMY rose 45.26% in 24 hours, MASA rose 28.96%, WLD rose 25.86%, and RENDER and ANKR also rose around 20% in 24 hours.
The Non-Fungible Token (NFT) sector has also gradually warmed up in the past 7 days, becoming the sector with the largest 7-day gain of 30%. According to CryptoSlam data, the CryptoSlam 500 NFT Composite Index, which measures the performance of the NFT market, has also rebounded by about 33% in the past three months.
In addition, the DeFi sector has also seen consecutive gains, with CRV rising about 60% in the past week, MORPHO rising about 75%, and tokens like UNI and AAVE also performing well. Among public chain tokens, the old "zombie coins" XRP, XLM, and ALGO have seen declines after consecutive increases, while the MOVE token SUI has been rising all the way, breaking through $4 USDT, with a gain of about 25% in the past few days.
Altcoin index continues to rise, market sentiment remains optimistic
Looking at the Altcoin season indicators, all indicators have seen a comprehensive increase, and the market may have reached a short-term high, with market sentiment still optimistic, entering a critical moment.
From the Altcoin season index, the current value has risen to 88. This index is intended to measure the profitability of Altcoins relative to Bitcoin. Specifically, it represents how many of the top 50 Altcoins have performed better than BTC in the previous quarter (90 days). The higher the value, the more it indicates the current Altcoin season. This value has reached a high point for the year, compared to around 30 at the beginning of November.
The Upbit Altcoin trading volume, as an indicator of the market's FOMO sentiment, can also reflect the current state of the Altcoin season to a certain extent. Generally speaking, when Korean investors are frantically FOMOing and trading volume reaches a peak, it is time to escape. Currently, this value has also reached a high point for the year.
From the perspective of BTC market dominance, it reached a stage high of 61% on November 21st. Historically, when Bitcoin's market capitalization reaches the 65-70% range, it usually heralds the start of an Altcoin season. This year, after reaching 61%, a broad Altcoin rally has already begun. Subsequently, BTC.D has continued to decline and is currently at 55%.
Analysts have different views on the market outlook
Regarding the market outlook, analysts have different views, and the market may enter a critical moment of gaming.
Geoffrey Kendrick, Head of Emerging Markets Foreign Exchange Research and Cryptocurrency Research at Standard Chartered Bank, said, "I am further optimistic about the market outlook, and expect the Bitcoin price to rise to around $200,000 by the end of next year, against the backdrop of potential increased institutional investment in Bitcoin." He stated in the report, "By 2025, Standard Chartered expects the flow of institutional funds to continue to maintain or exceed the pace of Bitcoin inflows in 2024."
Lau, an analyst at Oppenheimer, warned investors that Bitcoin prices will be volatile. He said, "Once Bitcoin reaches $100,000, investors need to be cautious, as there may be selling pressure, and the market will look for the next breakthrough point."
Trader Paulwei said, "Since September 7th, the unilateral rapid rise of BTC has lasted about 90 days, and it will reach 100 days around December 14th. Historically, the market may see a correction trend after 100 consecutive days of gains."
