Bitget Daily Digest | BTC dips to $90,790, OpenAI may catalyze AI hype (December 6)

Market highlights

1. BTC briefly dipped to $90,790 this morning. According to CoinGlass data, $765 million was liquidated in the past 12 hours, with $657M from long positions.

2. New gameplay has emerged with the influx of funds into $M3M3. Meteora introduces a new meme mechanism,  (3,3), allowing users to stake and earn. In less than 48 hours, $M3M3's market cap surged past $220 million before falling back to $160 million. 

3. Due to favorable U.S. policy, U.S. capital is currently dominating. The Coinbase 50 Index has added AXS, BLUR, JASMY, KSM, and EGLD, signaling potential opportunities for continued attention.

4. OpenAI has announced 12 product launches over 12 days, starting at 10:00 AM PST (2:00 AM UTC+8) on Thursday. This could ignite speculation in the AI sector, particularly with AI memecoins. 

 

Market overview

1. Bitcoin experienced a sudden drop of $10,000 before quickly rebounding. The broader market has seen declines, while smaller tokens are rallying to attract attention. 

2. U.S. stocks have fallen from record highs, with the chip index plummeting nearly 2%. U.S. jobless claims rose to a one-month high last week. The November nonfarm payrolls data will be released on Friday.

3. Currently priced at 97,453 USDT, Bitcoin faces significant liquidation risks. A 1000-point drop to around 96,453 USDT could trigger over $288 million in cumulative long position liquidations. Conversely, a rise to 98,453 USDT could lead to more than $652 million in cumulative short position liquidations. With short liquidation volumes far surpassing long positions, it's advisable to manage leverage carefully to avoid large-scale liquidations. 

4. Over the last 24 hours, BTC spot experienced $12.4 billion in inflows and $11.8 billion in outflows, resulting in a net inflow of $600 million.

5. In the past 24 hours, $ETH, $BTC, $DOGE, $XRP, and $SOL led in net outflows in futures trading, signaling potential trading opportunities.

 

Highlights on X

1. Colin Wu: Greater potential in 'U.S.-linked coins' after Bitcoin surpasses $100,000

Colin Wu suggests that investors should focus on coins with strong ties to the U.S. market after Bitcoin exceeds $100,000. These coins are likely to benefit from U.S. policy changes, particularly those with potential ETF inclusion, U.S.-based teams, and venture capital backing. Coins that were previously impacted by U.S. regulatory actions may also see a rebound as policies improve. Focusing on U.S.-connected coins could help investors capitalize on the next wave of growth.

X post: https://x.com/WutalkWu/status/1864548329000194270

2. @monkeyjiang: The wealth effect narrative of bull markets and future opportunities

Every bull market has a narrative that drives its wealth effect. Understanding these narratives is key. The most promising areas for future growth include DEFI, RWA, L1, and AI. These sectors are expected to generate innovative projects, with opportunities categorized into functional, business, and technical innovations. Investors can stay ahead of the market by identifying first-mover projects. Additionally, L1 projects are expected to achieve the highest market caps, with many new competitors emerging, creating substantial market opportunities.

X post: https://x.com/monkeyjiang/status/1864586068445593805

3. AB Kuai.Dong: Three market scenarios after Bitcoin hits new highs

Following Bitcoin's new all-time high, the market may follow three key scenarios: Firstly, Ethereum and altcoins may see a surge, driven by increased Ethereum ETF inflows and the launch of multiple Layer 2 (L2) projects, potentially leading to funds flowing back into the Ethereum ecosystem. Secondly, some platform tokens, particularly those with public chain attributes, may rise. Recent developments in these ecosystems are supporting their prices. Finally, new low-cap tokens often experience explosive growth following each new Bitcoin high. Historically, STEPN and ORDI have shown significant increases during bull markets. In general, catch-up rallies of lagging assets, growth of platform tokens, and new token explosions are common in the market after Bitcoin reaches a new high.

X post: https://x.com/_FORAB/status/1864536749432819978

4. @kwaker oats: Market outlook and investment strategies after Bitcoin hit $100,000

Bitcoin surpassing $100,000 is expected to attract significant capital inflows, further accelerating its rapid rise. $100,000 will not be a resistance level but an entry point for institutional investors. In particular, Bitcoin is expected to become a strategic reserve asset with the support from the Trump administration and several other countries. Meanwhile, the recovery of CEXs and the consolidation of altcoins may also affect market dynamics. Investors should consider reallocating a portion of altcoin profits to Bitcoin to prepare for the next bull run.

X post: https://x.com/kwaker_oats_/status/1864615606311637200

 

Institutional insights

1.CryptoQuant: Long-term BTC holders taking profits is a normal phenomenon during Bitcoin bull markets and remains far from extreme levels

Article: https://www.theblock.co/post/329489/cryptoquant-long-term-bitcoin-holder-profit-price-all-time-high

2.JP Morgan: MicroStrategy leveraged ETFs' impact on crypto markets is growing

Article: https://www.coindesk.com/markets/2024/12/05/micro-strategy-leveraged-etfs-impact-on-crypto-markets-is-growing-jp-morgan

3.Tether: Bitcoin’s rally and ETF inflows have led to a surge in USDT market cap

Article: https://www.theblock.co/post/329576/bitcoin-rally-etf-inflows-led-to-usdt-market-cap-surge-says-tether-ceo?utm_source=twitter&utm_medium=social

 

News updates

1. Former U.S. Treasury Secretary Lawrence Summers remarked that the U.S. Bitcoin strategic reserve plan is "too crazy" and only caters to special interest campaign donors.

2. Representing Department of Government Efficiency (D.O.G.E), Elon Musk will discuss today on Capitol Hill the transformation plan for the federal government.

3. The Financial Times has issued a public apology for its long-term negative coverage of cryptocurrencies.

4. Trump congratulated Bitcoin holders after Bitcoin surpassed $100,000.

5. Russian President Vladimir Putin suggested a cryptocurrency settlement system for the planned BRICS investment platform.

6. Jeju Island of South Korea plans to introduce a system that will convert virtual assets like Bitcoin into Jeju regional currency for local transactions.

 

Project updates

1. Molecule led the formation of a DeSci ecosystem fund and bought RIF and URO to support Pump.science.

2. Phantom Wallet has integrated the Sui blockchain.

3. U.S.-listed Worksport announced the purchase of XRP and Bitcoin, allocating 10% of its cash reserves to the assets.

4. Mode Network launched the subnet Synth on Bittensor.

5. Lumoz announced its tokenomics, allocating 66% of MOZ to the community, the ecosystem, and others.

6. The DEXX hacker's EVM addresses showed unusual activities this morning, indicating attempts to consolidate assets.

7. Lido's wstETH is now live on Starknet.

8. A former executive of a top exchange launched BuidlPad, a new ICO platform available to KYC-compliant users in non-restricted regions.

9. Sol Strategies, a company specializing in investments in the Solana ecosystem, has formally applied for listing on the Nasdaq Stock Market.

10. Circle announced a partnership with payment infrastructure Pockyt to support USDC merchant payment transactions.

 

Token unlocks

Cardano (ADA): Unlocking 18.53 million ADA, valued at $19.80 million, accounting for 0.05% of the circulating supply.

Cetus Protocol (CETUS): Unlocking 8.33 million CETUS, valued at $3.1 million, accounting for 1.37% of the circulating supply.

 

Recommended reads

Beta assets to watch as ETH catching up fast 

ETH is showing a strong rebound, accompanied by explosive growth in other projects within its ecosystem. This has led to rapid expansion in sectors such as DeFi, Layer 2, and GameFi. This article introduces some Ethereum Beta assets under the spot light that are worthy of investors' attention.

Read the full article here: https://www.bitgetapp.com/zh-CN/news/detail/12560604398366

 

Rationale behind the recent new highs of ENA and HYPE 

HyperLiquid and Ethena have both successfully fulfilled their respective product visions, despite employing different financing and token strategies. HyperLiquid focuses on decentralized derivatives, while Ethena has rapidly grown into a leading stablecoin protocol. Both made decisions aligned with product development, driven by user needs and dynamic strategy adjustments.

Read the full article here: https://www.bitgetapp.com/zh-CN/news/detail/12560604398453