Bitcoin reached a weekly high of $73,620, just one step away from a new high, before dropping back to the $70,000 level. It is worth observing when market sentiment will change. Below is a summary of important events, on-chain data updates, and events to watch for next week. (Background: Bitcoin drops below $70,000, is the correction over? U.S. stock markets fall, Meta and Microsoft earnings fail to impress investors) (Background Information: Weekly Report: Bitcoin rebounds strongly after falling below $66,000, U.S. government wallet hacked, SEC approves Bitcoin ETF options) This week (10/27-11/02) important events overview Bitcoin Dynamics: With Meta and Microsoft's poor earnings, the four major U.S. stock indices fell simultaneously, and Bitcoin briefly dropped below $70,000. U.S. yields surge: Trump's election could reignite 'inflation', with the 10-year U.S. Treasury yield rising to 4.28%. U.S. stock return expectations decline: RIA Advisors predicts the average annual return for U.S. stocks over the next decade will be only 3%, increasing recession risks. Yen trend: The Japanese Liberal Democratic Party's loss in the House of Representatives election led to a three-month low for the yen, with markets predicting the Bank of Japan will delay interest rate hikes to support the economy, increasing the risk of yen depreciation. Gold hits historic high: Gold prices are nearing $2,800, becoming a market safe-haven tool, raising the question of whether Bitcoin will follow suit. Binance founder CZ speaks in Dubai: CZ publicly spoke for the first time after his detention, revealing future focus directions. Arthur Hayes publishes lengthy article: Believes China's economic stimulus policy will ultimately lead to hot money flowing into the Bitcoin market. Vitalik responds to criticism: Vitalik Buterin strongly responds to external criticisms of the Ethereum Foundation, defending the foundation's sale of ETH behavior. This week's trading market data changes Sentiment and sectors 1. Fear and Greed Index The market sentiment index this week rose from 74 (Greed) to 75 (Greed), remaining in the (Greed) range throughout the week. 2. Funding Rate Heatmap This week, Bitcoin's funding rate peaked at 16.79% and dipped to 8.08%, indicating sustained bullish sentiment. The funding rate heatmap displays the trend of funding rate changes for different cryptocurrencies, with colors ranging from green for zero rate to yellow for 50% positive rate, while black indicates negative rates; the white K-line chart shows Bitcoin price fluctuations, contrasting with the funding rate. 3. Sector performance According to Artemis data, the average increase in the blockchain sector this week was (1.6%), with Memecoin, RWA, and DeFi occupying the top three spots at (10.9%, 6.3%, 5.5%). This week, Bitcoin and Ethereum increased by (5.1%, 3.9%). The three worst-performing sectors were: Data Availability (-7.2%), Gaming (-4.0%), Utilities and Services (-3.3%). Market liquidity 1. Total cryptocurrency market cap and stablecoin supply This week's total cryptocurrency market cap data shows an increase from $2.36 trillion to $2.4 trillion, adding $40 billion, with a total market cap increase of about 1.7%. The total supply of stablecoins, an important indicator of market health and liquidity, increased from $162.85 billion to $163.41 billion this week, adding $560 million, with an increase of about 0.34%. 2. Potential purchasing power within exchanges decreased Data shows that overall assets in exchanges experienced net outflows this week. Bitcoin technical indicators 1. Large net inflows into Bitcoin spot ETFs This week, Bitcoin ETF funds saw an inflow of $2.6284 billion. 2. Bitcoin rainbow chart The Bitcoin rainbow chart indicates that the current price of Bitcoin ($70,000) is in the 'Consider Buying' to 'Consider Dollar-Cost Averaging' range, between the 'Consider Dollar-Cost Averaging' stage ($70,000) and the 'Fire Sale' stage ($52,000). 3. Bitcoin net profit and loss performance The realized net profit and loss indicator for Bitcoin shows that the market has warmed up, with the ratio of profits to losses being roughly similar to January of this year. 4. Long-term Bitcoin holders reduce holdings According to on-chain data, since mid-October, this net position data has gradually turned negative, and has continued to decline in the following days, suggesting that long-term holders have begun to significantly reduce their holdings. The current selling pressure has not intensified further; however, Bitcoin's price breaking $70,000 poses a challenge to the short-term support from net positions of holders. If this trend continues, the market may face some downward pressure. 5. Strong on-chain purchasing power for Bitcoin According to on-chain data, the structural changes in Bitcoin's long-term and short-term holders this week indicate an increase in market risk appetite. With short-term capital influx supporting price increases, market liquidity has improved. However, the reduction in long-term holders' positions may add pressure in the future, and the continuity of this trend needs to be observed in the coming weeks. 6. Bitcoin contract open interest hits new high According to the data, Bitcoin's contract open interest within exchanges showed a steady upward trend this week, rising from $37.27 billion to a peak of $43.8 billion, ultimately falling back to $41.4 billion, still above the key level of $39 billion at the end of March this year. The overall increase in open interest reflects active leveraged trading activities, indicating a significant increase in investors' risk appetite. Important Ethereum technical indicators 1. Net inflows into Ethereum spot ETFs This week, Ethereum ETF saw a net inflow of approximately $4.7 million. 2. Bitcoin correlation This week's data shows that the correlation between BTC and ETH and SOL is 0.9 and 0.3, respectively. Compared to last week, the correlation between BTC and SOL shifted from negative (-0.15) to positive (0.30), suggesting signs of a possible market recovery for SOL. The correlation among major tokens has generally strengthened, indicating a higher consensus in the market regarding overall trends, especially strong interconnectivity between BTC, ETH, and DOGE. 3. Total Value Locked (TVL) in the DeFi market This week's data shows that the total TVL in the DeFi market decreased from $86.785 billion last week to $87.93 billion. This week's market analysis news 1. Bitcoin drops below $70,000, is the correction over? U.S. stocks plummet, Meta and Microsoft's earnings fail to impress investors. U.S. stocks fell due to disappointing earnings from Meta and Microsoft, leading to declines in all four major indices, with Bitcoin also affected, briefly dropping below $70,000. (Continue reading) 2. Taiwan's labor insurance bankruptcy warning sounds alarm, can embracing Bitcoin lead to a comeback? The latest statistics from the Directorate-General of Budget, Accounting and Statistics show that as of the end of June this year, both central and local governments are recording new highs in hidden liabilities, highlighting the heavy burden on the next generation and bringing the topic of labor insurance bankruptcy back to the forefront... Could the government achieve a turnaround by embracing Bitcoin? (Continue reading) 3. Is the high return era for U.S. stocks over? Analysts warn: future returns will be only 3%. RIA Advisors investment strategist Lance Roberts stated on the 25th that U.S. stocks may face recession risks over the next decade and used multiple indicators for comprehensive analysis to find evidence of impending recession through chart data. (Continue reading) 4. Arthur Hayes's lengthy article: China's 'epic liquidity injection' will eventually lead to hot money flowing into Bitcoin.

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