KEY MARKET INSIGHTS

The Week That Was - Btc / USD

Crypto wipe-out brings Bitcoin back to $50,000...Is the Bull Market over?

The downtrend that began in early November since the $69,000 ATH finally resolved itself in a final plunge into the low $40,000's that pushed the fear and greed index into absolute panic not seen since the $30k lows seen mid-year. Savvy buyers will be paying attention to this extreme sentiment shift. The most violent period of the move happened over a 48-hour period where Bitcoin lost nearly 30% value during a cascade of derivative liquidations, wiping out $2.5 Billion from the market and seeing an overreaction to the downside. The doorstop to the fall was when buyers clearly found value around or below the 200 MA. Since the heavy dip we have seen a 23% rebound back above $50k.

Bitcoin finds itself in no-man's land here between $50k and $52k but bulls will be encouraged that we've seen a total flush of derivatives from the market while also building support above the key psychological support at $50,000 as we approach oversold territory. This will take time to recover so bulls should be under no illusion - they need 52k reclaimed fast, however, we have seen how quickly it can turn around when we had a similar drop to 30k then a rally back to ATH. For deeper insights into Dec/Jan & crypto buy/sell recommendations sign-up to our paid Monthly Newsletter. Happy Hunting!

THIS WEEKS TOP HIGHLIGHTS

1. Marathon Bitcoin Mining raises $650m in debt to buy Bitcoin for their balance sheet

2. US Senators put forward Crypto Bill to amend damaging Infrastructure Legislation

3. Investment giant, Fidelity becomes Canada's first Institutional Bitcoin Custodian

4. Staples Centre in US will rename to Crypto.com Arena

5. Dr. Jordan B Peterson buys Bitcoin and says BTC mining is "mind-blowing"

On-Chain Insight

Bitcoin Options markets currently have over $12.6 Billion in open interest, near all-time-highs.

This level of Option OI has been sustained for around 1 month, and is similar to the highs during March and April.

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DID YOU KNOW?

The Defi market now holds over $260 Billion Dollars worth of USD locked in Defi protocols according to Defi Llama.

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