Bitfinex Releases its 132nd Alpha Report
According to the Bitfinex Alpha Report, Bitcoin is being driven toward the $100,000 level by strong institutional demand and significant interest in Bitcoin ETFs. The leading cryptocurrency has shown a 130% increase since the beginning of the year, surpassing Saudi Aramco in global market capitalization to rank seventh. According to Bitfinex's 132nd Alpha Report, Bitcoin is approaching the $100,000 mark, influenced by Bitcoin ETFs and strong institutional demand. Despite a profit-taking resistance at the $99,334 level, Bitcoin remained steady around $96,000 over the weekend and gained strength on Monday. With a 130% increase since the start of the year, it appears to be outperforming traditional assets. Currently, with a valuation of $1.9 trillion in this quarter, Bitcoin ranks globally seventh, having surpassed Saudi Aramco (TADAWUL:2222).
In the Bitcoin and altcoin markets, value appreciation is occurring amid profit-taking and increasing sentiment. The rise in Bitcoin is supported by long-term holders (LTHs) realizing profits. Following last month's all-time high, over 461,000 BTC were spent, indicating that LTHs are capitalizing on their significant gains. While distribution pressure has increased, it remains limited compared to the peaks of March 2021 and March 2024. These movements suggest that a healthy stagnation is taking place, absorbing selling pressure in the market, which could continue to gain upward momentum in the medium term. In other altcoins, significant increases have also occurred alongside positive investor sentiment, with large-cap altcoins reaching new highs. Altcoins like Solana (SOL) have surpassed historical resistance levels, achieving all-time highs. Additionally, the total market capitalization of altcoins is increasing with speculative capital shifting from Bitcoin.
The market capitalization of altcoins is approaching the $984 billion peak of May 2021, indicating a shift of speculative capital from Bitcoin to altcoins. This suggests the beginning of an "altcoin season," where substantial gains could be realized in altcoins relative to Bitcoin. Annualized funding rates for large-cap altcoins provide warnings of increasing speculative activity; however, excessive funding rates can often precede sharp corrections. In the U.S. economy, contradictory signals between consumer sentiment and the housing market reflect both optimism and persistent challenges. Consumer sentiment improved in November, but rising inflation expectations are raising concerns about Trump's policies. The housing market is facing difficulties due to high mortgage rates and hurricane effects.
Significant regulations in the crypto market have emerged. Last week, the SEC approved the introduction of Bitcoin ETF options but postponed its decision on the BTC-Ethereum combined ETF proposed by Franklin Templeton. South Korea plans to implement a 20% crypto capital gains tax in 2025, establishing an exemption threshold of 50 million won (~$35,919) to protect small investors. Legislative votes are scheduled for this month. Additionally, Cboe will launch cash-settled options based on spot Bitcoin on December 2, providing effective risk management tools. These developments indicate that cryptocurrency is beginning to integrate further with the traditional financial system.