$600 million liquidated, Bitcoin spiked to $90,500 this morning.
Written by: Shaofaye123, Foresight News
After Bitcoin rose to $100,000, a significant downward spike occurred this morning, with approximately $600 million liquidated in 24 hours. The CMC altcoin season index rose to 88, with the market having risen for nearly 100 days, entering a critical moment.
Bitcoin spiked to $90,500
Yesterday, after BTC broke through $100,000, it fell throughout the evening. At 6:28 AM on December 6, BTC/USDT experienced an extreme spike, with BTC briefly dropping to $90,500. In 12 hours, $477 million was liquidated, with long positions accounting for $410 million. It has since gradually recovered to $97,860, and other altcoins like ETH have also gradually recovered after a brief pullback.
Bitcoin spot ETF data can provide insights into the movement of off-exchange funds. When net inflows are large, buying pressure increases, leading to a higher likelihood of Bitcoin price increases. According to SoSovalue data, Bitcoin spot ETFs remain in a state of continuous net inflow, but the inflow amount is gradually decreasing. Additionally, the funding rate for Bitcoin reached a peak on December 5 after consecutive increases, and following the liquidation of long positions yesterday, it has begun to decline, indicating a reduced bullish momentum in the market.
Additionally, on the morning of December 6, U.S. President-elect Trump announced the appointment of David O. Sacks as the White House AI and cryptocurrency director. As a cryptocurrency-friendly figure, David O. Sacks demonstrated a strong belief in cryptocurrency in earlier years. In 2018, he also joined the advisory board of the core team of the decentralized trading protocol 0x. With David O. Sacks' rise to power, Bitcoin may surge again.
MicroStrategy, 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 conditions to enter the Nasdaq 100 index and ranks 66th among qualifying companies by market capitalization, while the top 75 companies will be automatically included in the Nasdaq 100 index.
Altcoins continue to rise, with the AI sector experiencing a widespread increase.
Although BTC experienced a spike yesterday, altcoins did not decline significantly, and market sentiment remains optimistic, with the greed index reaching 72.
On December 6, OpenAI officially held a press conference, releasing the complete version of o1 on the first day, along with the o1 Pro Mode. o1 has made breakthrough progress in three key areas: solving difficult math problems, programming ability testing, and analyzing complex scientific questions. Compared to the preview version, various indicators have improved by over 40%. Updates will continue to be released over the next 12 days.
Possibly influenced by the positive news from the OpenAI press conference, the AI sector has experienced a comprehensive rise. According to SoSovalue data, the AI sector saw a widespread increase yesterday. According to Bitget's market data, JASMY rose by 45.26% in 24 hours; MASA by 28.96%; WLD by 25.86%; and RENDER and ANKR also rose by 20% in 24 hours.
The NFT sector has gradually warmed up over the past 7 days, with the 7-day increase reaching a maximum of 30%. According to CryptoSlam data, the CryptoSlam 500 NFT Composite Index, which measures NFT market performance, has also risen by about 33% over the past three months.
In addition, the DeFi sector has also seen consecutive increases, with CRV rising by 60% in the past week, MORPHO by about 75%, and tokens like UNI and AAVE performing remarkably. Among public chain tokens, the once-popular 'zombie coins' XRP, XLM, and ALGO have seen declines after consecutive rises, while the MOVE series token SUI has surged, breaking through 4 USDT, with a rise of 25% in recent days.
The altcoin index continues to rise, and market sentiment remains optimistic.
From the perspective of the November altcoin season indicators, various metrics have shown a comprehensive rise, and the market may have reached a peak in the short term, with sentiment remaining optimistic, entering a critical moment.
From the altcoin season indicators, the current value has risen to 88. This indicator aims to measure the profitability of altcoins compared to Bitcoin. Specifically, it represents how many tokens among the top 50 altcoins have performed better than BTC in the previous quarter (90 days); the larger the value, the more it indicates that it is currently altcoin season. This value, compared to around 30 in early November, has reached a yearly high.
Upbit's altcoin trading volume, as a basis for the market's FOMO sentiment index, can also reflect the current state of altcoin season to some extent. Generally speaking, when Koreans are crazy FOMOing and trading volume reaches its peak, it is time to exit. Currently, this value has also reached a yearly high.
In terms of BTC market share, it reached a peak of 61% on November 21. Historically, when Bitcoin's market capitalization reaches the range of 65-70%, it usually heralds the onset of altcoin season. This year, after reaching 61%, a comprehensive rise in altcoins has already begun. Subsequently, BTC.D has continued to decline and is currently down to 55%.
Analysts have varying views on the later stage of the market.
Regarding the later stage of the market, analysts have differing opinions, and the market may enter a critical moment of speculation.
Geoffrey Kendrick, head of emerging market foreign exchange research and cryptocurrency research at Standard Chartered Bank, said, "Looking further ahead, we expect that under the backdrop of institutions potentially increasing their investment in Bitcoin, the price will rise to about $200,000 by the end of next year." He claimed in the report, "By 2025, Standard Chartered expects institutional fund flows to continue to maintain or exceed the pace of inflows into Bitcoin seen in 2024."
Oppenheimer analyst Lau reminds investors that Bitcoin prices will experience volatility. He stated, "Once Bitcoin prices reach $100,000, investors need to remain cautious, as there may be selling pressure, and the market will look for the next breakthrough point."
Trader Paulwei stated, "Since September 7, the rapid unilateral rise of BTC has continued for about 90 days, and it will reach 100 days around December 14. Historically, the market often experiences a correction trend after a consecutive rise of 100 days."
