According to Odaily, Bitcoin achieved a historic milestone last week by surpassing the $100,000 mark for the first time, reaching a peak of $104,000. This represents a remarkable 111% increase from its summer low of under $50,000. However, this surge was followed by a significant 14.84% correction, including a rapid 10% drop within just eight minutes. This correction marks the largest pullback from a record high since the pre-U.S. election sell-off. The market adjustment led to over $1.1 billion in liquidations, with $419 million attributed to Bitcoin long positions, highlighting the market's leverage levels.
Despite the intense market fluctuations, signs of stabilization are emerging. The realized profit metric, which had peaked at $10.5 billion daily, has now decreased to $2.5 billion, alleviating selling pressure. Additionally, futures funding rates have normalized, indicating a reduction in speculative leverage. Although ETF inflows slightly slowed over the weekend, they remain a crucial support source amid ongoing profit-taking by long-term holders. As Bitcoin consolidates above $100,000, the medium-term outlook remains bullish. With the normalization of funding rates and easing of selling pressure, further gains are possible as long as ETF inflows continue to rise.
Moreover, the Federal Reserve is assessing potential policy shifts under the new administration, while the economy is supported by a resilient labor market and stable consumer demand. However, the uneven recovery across various sectors suggests a need for cautious optimism.
