CoinVoice has learned that Bitfinex released a report stating that the trend of Bitcoin approaching the historic $100,000 mark is driven by unprecedented inflows into Bitcoin ETFs and strong institutional demand. Despite facing profit-taking resistance at its latest historical peak, Bitcoin has shown resilience, maintaining around $96,000 over the weekend before regaining some upward momentum in Monday's early trading. Since the pre-election low of $66,880, Bitcoin has risen by 47%, and it has astonishingly increased by 130% year-to-date, opening up new horizons. The performance of Bitcoin compared to traditional assets is undeniable: Bitcoin's market capitalization has now surpassed Saudi Aramco, making it the seventh-largest asset globally, with a valuation exceeding $1.9 trillion at its peak.
Despite the impressive upward momentum of Bitcoin, it is not without profit-taking from long-term holders. Although pressure has increased, the current pressure remains manageable compared to the historical peaks in March 2021 and March 2024. These trends suggest that market momentum is temporarily stagnating, but the overall market may absorb selling pressure and continue to rise in the medium term.
The overall cryptocurrency market (excluding Bitcoin and Ethereum, referred to as the Total3 index) has also reached a new cycle high, driven by a surge in investor sentiment which propelled the Total3 index to a 23.2% rise from low to high last week - the largest increase since April 2021. Large-cap altcoins, such as Solana (SOL), have reached new all-time highs, marking their breakthrough of key resistance levels, including the April 2022 peak.
The market capitalization of altcoins is now approaching the $984 billion high from May 2021, indicating that speculative funds are shifting from Bitcoin to altcoins. Historically, this rotation of funds often heralds the arrival of 'altcoin season,' where altcoins outperform Bitcoin.
In fact, the annualized funding rate for large-cap altcoins has surpassed the 45% threshold, marking an escalation in speculative activity. With the increasing participation of retail investors, short-term volatility is expected to rise, further driving the momentum of altcoins. However, these conditions also require caution, as extreme funding rates often indicate a severe market correction. [Original link]
