According to the latest edition of the Bitfinex Alpha report, Bitcoin (BTC) remains well-positioned for further upside gains, despite experiencing a nearly 14% decline after reaching a new all-time high (ATH) of over $104,000. The premier cryptocurrency is now consolidating near the $100,000 price level.
Biggest Market Correction Since Pre-Election Sell-Off
Bitcoin’s drop from $104,000 marks one of the most significant market pullbacks since the pre-election sell-off, resulting in over $1.1 billion in liquidations. Of this total, $815 million were long positions, including $419 million tied to BTC, indicating that many market participants anticipated further price gains.
Despite this volatility, the report highlights signs of market stabilization. Realized profit – a metric measuring the total profit investors secure by selling assets at prices higher than their acquisition costs – has dropped from a peak of $10.5 billion per day to $2.5 billion per day. This decline has reduced sell-side pressure in the market.
Moreover, the massive liquidations have contributed to normalizing funding rates for major cryptocurrencies. For instance, following BTC’s recent ATH, funding rates hovered in the 80% to 100% annual percentage rate (APR) range, reflecting significant leveraged long positions in the market.
Now, with funding rates resetting below 15% APR, it suggests excess leverage has been cleared, creating room for more sustainable price movements. The report states:
As Bitcoin consolidates around $100,000, the mid-term outlook remains bullish, and with normalising funding rates and slowing sell-side pressure, further upward momentum is likely, provided ETF inflows continue.
Bitcoin and Ethereum (ETH) exchange-traded fund (ETF) inflows have shown consistent growth since Donald Trump’s victory in the recent U.S. presidential elections. Notably, spot ETFs now hold more BTC than the total holdings of Bitcoin’s pseudonymous creator, Satoshi Nakamoto.
Similarly, spot ETH ETFs – despite a lukewarm launch – are beginning to attract significant attention from institutional investors. Recently, spot ETH ETFs achieved a record ten-day streak of consecutive inflows.
The report emphasizes that as Bitcoin consolidates around $100,000, this level will no longer serve as a key resistance or support zone. Instead, BTC is likely to find a new price equilibrium in the market.
More Fuel Left In The Tank For Bitcoin
While Bitcoin has crossed the psychologically significant $100,000 level, analysts suggest the rally may be far from over. According to the market analytics platform CryptoQuant, BTC could reach a cycle peak of $146,000.
Additionally, BTC whales continue to accumulate at key price levels. Recent data shows that whales increase their holdings whenever Bitcoin trades between $95,000 and $99,000.
Adding to the bullish narrative, there are growing speculations about e-commerce giant Amazon potentially adding Bitcoin to its balance sheet. BTC trades at $97,824 at press time, down 1.1% in the past 24 hours.
