Market Analysis – The number of liquidations exceeded that of the tragic event on March 12, 2020; can we enter the market to buy the dip?
On December 10, the market experienced the largest correction of the current bull market, primarily affecting the altcoin market. With Bitcoin's maximum intraday drop of about 7%, altcoins generally plummeted by over 20%, with some experiencing spikes of more than 50%. It was equivalent to being liquidated with twice the leverage. Furthermore, last night at 11 PM, the market saw another significant pullback, with many altcoins falling below the lows of December 10.
Meanwhile, the cryptocurrency market experienced a total liquidation of $2 billion within two days, with the single-day liquidation amount on December 9 reaching $1.55 billion, the second-highest in history after September 2021, indicating that this drop has liquidated most high-leverage positions.
The total open interest in the market fell from $138 billion to $118 billion, a decline of about 14.5%.
The open interest (OI) of most altcoins has seen a noticeable decline over the past two days. In contrast, the decline for BTC was much smaller due to its lesser drop.
GT Radar's two portfolios have gradually reduced their positions to lock in profits at recent highs, so this sudden drop has not caused a significant pullback in the portfolios.
This drop is not significantly related to traditional finance. In fact, before the drop, the spot market for altcoins had already shown signs of declining trading volume. Overall, the combination of profit-taking, insufficient liquidity from spot buyers, and high leverage liquidations in the contract market ultimately led to this significant correction.
However, it should be emphasized that the fundamentals of mainstream coins have not changed. From the continued inflow into both BTC and ETH spot ETFs over the past two days, it can be seen that the U.S. market remains optimistic about the future. On the other hand, the funding rate has been at a relatively high level since the end of November, indicating that the market is in a state of overheating and high risk. However, after experiencing a 'de-leveraging' over the past two days, the overall market has cooled down, returning to a relatively healthy state.
Regarding the price trend of BTC, this drop has reached the lower boundary of the overall rising channel since the November bull market, presenting a good buying opportunity, as the stop-loss is relatively low, and the risk-reward ratio is favorable. Moreover, the overall market has already experienced two consecutive days of significant declines, indicating a technical demand for a rebound in the short term.
Our two portfolios entered partial positions this morning. We remain optimistic about the market's future as long as there are no significant changes in the fundamentals. However, with Christmas approaching, the market may cool down slightly and focus on fluctuations.
Is Binance giving up on the inscription market?
Last night, Binance Customer Support's official X account dropped a bombshell in response to user inquiries, stating that Binance's inscription market has been removed, and users can currently not buy or sell inscription assets. Although Binance's exit from the inscription market does not necessarily mean a bearish outlook on the future development of this sector, part of the reason may also relate to the first-mover advantage established by competitors such as OKX and Magic Eden. After all, the inscription market is not large, and with such strong competition, it may be better to abandon this business and invest resources elsewhere for potentially better results.
Due to the poor overall market performance in the last two days, it is currently unclear whether the inscription market has been affected by Binance's decision. However, an interesting phenomenon observed is that although both are part of the Bitcoin ecosystem, the performance of 'NFT series' and 'Token series' seems to differ over the past month.
According to data from Magic Eden, while not excellent, the mainstream NFTs in the Bitcoin ecosystem still perform at a certain level.
In contrast, Bitcoin ecosystem tokens led by BRC20 have shown relatively weak performance over the past month, especially the two major players, ORDI and SATS, which fell by over 20% despite an overall market rally in the past month. This indicates that the hype around the inscription sector may struggle to recover in the short term.
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The returns of 'GTRadar – BULL', 'GTRadar – Balance', and 'GTRadar – Potential Public Chain OKX' over the past 7 days were -5.53%, -1.64%, and -4.27% respectively, while the returns over the past 30 days were +20.91%, +11.73%, and -0.45%.
Currently, 'GTRadar – BULL' holds a net long position of 25%, primarily in DOGE and ETH.
Currently, 'GTRadar – Balance' holds a net long position of about 10%, primarily in AAVE and ETH.
Currently, 'GTRadar – Potential Public Chain' holds a net long position of about 10%, primarily in ETH.
Followers who frequently change their investment portfolios tend to have lower long-term returns than those who consistently follow one portfolio. One should not easily end following a strategy due to short-term pullbacks; in fact, from the curve, pullbacks often present good opportunities to start following. Constantly entering and exiting may significantly reduce returns.
Focus News
Fed Chairman Powell states, 'Bitcoin is like gold.'
Federal Reserve Chairman Jerome Powell stated at a New York Times event last week that when asked about his views on Bitcoin, he said, "People use Bitcoin as a speculative asset, right? It's like gold." He further explained, "It's like gold, only it's virtual, it's digital. It is not a competitor to the dollar; it is more like a competitor to gold, that's my view of it."
Trump officially nominates Paul Atkins as the new SEC chairman.
President-elect Donald Trump announced on Thursday the nomination of Paul Atkins as the next chairman of the U.S. Securities and Exchange Commission (SEC). Atkins, who previously served as an SEC commissioner, is the founder and CEO of Patomak Global Partners, a global consulting firm focused on strategy, risk management, and compliance. Clients include cryptocurrency companies, traditional financial institutions, publicly traded companies, trade associations, law firms, banks, and insurance companies.
Bitcoin reaches the milestone of $100,000, with a market cap exceeding $2 trillion.
The price of Bitcoin (Bitcoin) broke the $100,000 mark last week, with the successful launch of the U.S. Bitcoin spot ETF and the election of pro-cryptocurrency Donald Trump as President of the United States becoming the main driving forces behind this round of bull market. Additionally, corporate adoption of Bitcoin has also played a role, with more companies following MicroStrategy's lead in holding Bitcoin.
Putin: No one can ban Bitcoin; people are seeking to reduce costs and increase reliability.
According to TASS, Russian President Vladimir Putin stated at the investment forum 'Russia Calling!' organized by VTB on Wednesday that no one can ban Bitcoin, and the natural process related to the development of new payment tools is progressing.
The monthly trading volume of centralized cryptocurrency exchanges has doubled, surpassing $10 trillion for the first time in November.
Cryptocurrency trading activity in November surged significantly under the optimistic expectation that the Trump administration might implement friendly regulatory measures, with data compiled by research firm CCData showing that the total monthly trading volume of centralized exchange spot and derivatives soared by 101%, reaching $10.4 trillion.
(Financial Times) issues an apology: We deeply regret our skepticism towards Bitcoin over the past decade.
The Financial Times' column FT Alphaville issued a statement last week apologizing for its long-held skepticism toward Bitcoin over the past decade.
Trump announces the first 'AI and Crypto Czar' in the White House!
According to a statement from President-elect Trump, he will appoint David O. Sacks as the first 'AI and Crypto Czar' in the White House, responsible for guiding U.S. policies and regulations in the fields of AI and cryptocurrencies. Additionally, David O. Sacks will lead the President's Council of Advisors on Science and Technology to provide the government with strategic advice related to technology.
The NFT project 'Pudgy Penguins' announced the issuance of the PENGU token.
Ethereum NFT project 'Pudgy Penguins' announced that it will issue the official token PENGU. It is reported that the total supply of PENGU will be 88,888,888,888 tokens, with the initial issuance on the Solana blockchain. However, team members stated that in the future, they will adopt a multi-chain model to expand the token to ecosystems like Ethereum.
The SEC has rejected the SOL ETF application! Insiders say no cryptocurrency ETFs will be approved before the transition of power.
According to information shared by Fox Business reporter Eleanor Terrett, at least two of the five Solana ETF issuers have received notifications from the SEC that their submitted 19b4 documents will be rejected. Furthermore, Eleanor Terrett added that insiders indicated that during the current administration, the SEC may not approve any new cryptocurrency ETF applications.
Amazon will decide at its 2025 shareholder meeting whether to adopt Bitcoin as a corporate reserve asset.
The National Center for Public Policy Research (NCPPR), a think tank based in Washington, D.C., recently submitted a shareholder proposal to internet giant Amazon, suggesting that the company consider adopting Bitcoin (BTC) as part of its corporate treasury strategy at its shareholder meeting in April 2025.
MicroStrategy announced the additional purchase of 21,550 Bitcoins.
According to SEC documents disclosed by MicroStrategy, the company purchased an additional 21,550 Bitcoins at an average price of $98,783 between December 2 and December 8, for a total value of approximately $2.1 billion. As of December 9, the company held a total of 423,650 Bitcoins at an average cost of about $60,324.
Microsoft shareholders rejected the proposal to include Bitcoin in reserves.
According to reports, Microsoft shareholders voted down a proposal to include Bitcoin in the company's balance sheet at the annual meeting held on Tuesday, primarily due to concerns about Bitcoin's volatility.
MicroStrategy expects to join the Nasdaq 100 index on December 23.
According to information shared by Bloomberg ETF analyst Eric Balchunas, MicroStrategy is expected to join the Nasdaq 100 index on December 23, with an official announcement expected this Friday (December 13). The ETF tracking the Nasdaq 100 index will purchase MicroStrategy shares worth approximately $2.1 billion, which is equivalent to 20% of the company's average daily trading volume. Analysts estimate that MicroStrategy's weight in the Nasdaq 100 may be 0.47%, making it the 40th largest holding in the index.
If the regulatory environment changes, Goldman Sachs will consider entering Bitcoin and Ethereum trading.
Goldman Sachs CEO David Solomon stated at the Reuters Next conference on Tuesday that if there is a change in the regulatory environment in the United States, Goldman Sachs will "evaluate" entering Bitcoin and Ethereum trading.
The above content does not constitute any financial investment advice. All data comes from GT Radar's official announcements, and individual users may have slight differences due to varying entry and exit prices. Past performance does not guarantee future results!
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