Tag Archives: bitcoin

Nasdaq tumbles, but Bitcoin soars past US$97K on massive short squeeze

Nasdaq tumbles, but Bitcoin soars past US$97K on massive short squeeze

Markets entered a period of recalibration as US equities extended their losses for a second straight session amid shifting investor sentiment and geopolitical developments. The tech-heavy Nasdaq Composite led the retreat, falling one per cent to close at 23,471.75, while the S&P 500 dropped 0.53 per cent and the Dow Jones Industrial Average edged down just 0.09 per cent.

This rotation out of high-flying technology names reflected growing concerns about stretched valuations, compounded by external pressures such as China’s new restrictions on US cybersecurity software, which directly affect semiconductor giants like Nvidia and Broadcom. Investors appeared to favour economically sensitive sectors over growth-oriented tech, signalling a potential pivot in market leadership early in the year.

Global markets showed more resilience on January 15. Asian and European equities traded mixed or slightly higher, buoyed by optimism around artificial intelligence applications and signs that deflationary pressures may be easing in key economies. This divergence underscored a nuanced global outlook. While US markets grappled with domestic policy uncertainty and sector rotation, international investors focused on forward-looking catalysts in AI adoption and macroeconomic stabilisation.

Commodities and currencies also reflected this transitional mood. Crude oil prices plunged nearly three per cent, with West Texas Intermediate settling around US$60.22 per barrel after President Trump adopted a less confrontational tone toward Iran, alleviating fears of supply disruptions that had driven a five-day rally. Precious metals pulled back modestly from record highs, with spot gold hovering near US$4,610 per ounce. The US dollar held steady against the euro at approximately 0.85915 EUR per USD, suggesting stable foreign exchange dynamics despite underlying volatility in risk assets.

In stark contrast to the equity pullback, the crypto market advanced 0.89 per cent over the past 24 hours, extending a seven-day rally that has delivered a cumulative gain of 4.86 per cent. This momentum stemmed primarily from two powerful forces: a decisive technical breakout in Bitcoin and a surge in institutional demand through spot ETFs. Bitcoin shattered the US$95,000 resistance level that had contained its price action since December, climbing to US$97,000 on heightened volume.

The move triggered US$588 million in short liquidations, the largest since November 2025, fuelling a classic short squeeze that amplified upward momentum. With the Relative Strength Index now at 75.42, the asset sits in overbought territory, and traders remain fixated on the psychological US$100,000 milestone.

Simultaneously, institutional appetite reemerged with remarkable force. On January 13, spot Bitcoin ETFs recorded US$753.7 million in net inflows, the highest single-day total since October 2025. BlackRock’s IBIT fund alone attracted US$391 million, reinforcing the narrative that large financial players continue to view Bitcoin as a strategic macro hedge rather than a speculative instrument. This renewed confidence from traditional finance provided critical support amid lingering retail caution, effectively anchoring the broader crypto rally.

Sentiment metrics corroborated this shift. The Fear & Greed Index climbed to 54, moving from “Fear” into “Neutral” territory, up 11 points from the prior week. This improvement suggests that market participants are regaining composure after weeks of uncertainty, creating fertile ground for altcoin participation alongside Bitcoin’s leadership.

In my view, this moment marks a pivotal inflection point in the evolving relationship between traditional and digital asset markets. While US equities undergo a necessary correction, particularly in the overvalued tech sector, crypto is demonstrating increasing maturity through institutional validation and technical conviction. The juxtaposition is telling.

As political scrutiny intensifies around the Federal Reserve and banking regulations, and as geopolitical risks temporarily recede, capital seeks alternatives that offer both asymmetric upside and structural independence. Bitcoin’s breakout above US$95,000 is not merely a price event. It is a signal that the asset class is increasingly decoupling from short-term equity volatility and asserting its role within diversified portfolios.

Sustainability remains contingent on price holding key support. A failure to maintain levels above US$96,000 could invite profit-taking, especially given the elevated RSI. For now, the confluence of technical momentum, institutional flows, and improving sentiment paints a cautiously optimistic picture. Crypto’s rally may persist even as traditional markets navigate choppy waters.

 

Source: https://e27.co/nasdaq-tumbles-but-bitcoin-soars-past-us97k-on-massive-short-squeeze-20260115/

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Gold hits US$4,500 while Bitcoin bleeds: The year-end market disconnect explained

Gold hits US$4,500 while Bitcoin bleeds: The year-end market disconnect explained

There is a stark contrast between traditional markets and digital assets as we approach the year’s end. Asian stocks advanced at the open following the S&P 500 Index’s climb to a record high, supported by robust US economic data indicating the fastest growth pace in two years. MSCI’s regional equities gauge extended gains into a fourth consecutive day, rising 0.3 per cent, with Japanese and South Korean benchmarks leading the advance. Meanwhile, the cryptocurrency market tells a different story, falling 1.05 per cent over the past 24 hours and extending a seven-day decline of 0.71 per cent. This divergence highlights the complex relationship between traditional and digital asset classes during periods of economic strength and geopolitical tension.

The commodities market has captured significant attention with gold rallying to an unprecedented high of more than US$4,500 per ounce. This milestone represents gold’s strongest performance in recent memory, with its haven appeal amplified by Washington’s blockade of oil tankers linked to Venezuela. Silver also reached an all-time high, while copper prices exceeded US$12,000 per ton for the first time in history. Despite this remarkable performance in precious metals, crypto markets remained unaffected by gold’s surge, continuing their downward trajectory, even though they have historically shown some correlation during risk-off periods.

Geopolitical tensions have extended the oil price rally into a sixth consecutive session, with West Texas Intermediate crude trading above US$58.50 per barrel. These market dynamics indicate that investors are seeking traditional safe havens amid uncertainty. Yet cryptocurrency markets, often described as potential inflation hedges and stores of value, have failed to capitalise on the macroeconomic conditions that typically drive alternative investments.

The crypto market’s current weakness stems from three interconnected factors: institutional pullback, derivatives market deleveraging, and persistent risk-off sentiment. Spot Bitcoin and Ethereum ETFs experienced net outflows of US$142.2 million, marking a significant reversal from November’s US$198 million inflows. This institutional caution reflects profit-taking behaviour and growing macroeconomic uncertainty as we approach year-end. ETF flow data serve as a critical leading indicator of institutional demand, and sustained outflows could delay a meaningful market rebound until fresh capital enters the ecosystem.

Derivatives markets reflect additional pressure, as total open interest fell 4.4 per cent to US$35 billion over 24 hours. Bitcoin perpetuals funding rates spiked 102.7 per cent as leveraged traders faced substantial liquidation pressure. Long position holders paid approximately US$81.6 million in forced liquidations, highlighting the vulnerability of overleveraged positions during market downturns. This deleveraging appears partly connected to holiday trading patterns, with many participants reducing exposure ahead of the Christmas period when liquidity typically dries up. However, the elevated funding rates paradoxically suggest a lingering bullish bias among remaining traders, creating a complex market structure that is vulnerable to cascading liquidations should Bitcoin break critical support levels around US$84,000.

Market sentiment metrics reinforce this cautious outlook. The CoinMarketCap Fear & Greed Index remained at 27 out of 100, classified in the Fear category for more than 18 consecutive days. This represents the lowest sentiment reading since November and indicates severely eroded retail confidence. Social media analysis reveals growing concerns about exchange manipulation, with Binance-linked selloffs trending across major platforms. The Altcoin Season Index at 19 indicates that capital remains defensively positioned, primarily in Bitcoin rather than rotating into alternative cryptocurrencies. This defensive posture contradicts the broader market narrative of strengthening risk appetite, which has driven technology stocks higher despite strong US economic data, scaling back expectations for near-term Federal Reserve easing measures.

The cryptocurrency market’s current disconnect from traditional assets warrants deeper examination. While technology stocks remain in high demand despite earlier concerns about valuation and saturation in artificial intelligence investment, digital assets face significant headwinds. Traders have regained confidence that established technology companies will deliver solid earnings growth in 2026, yet similar optimism has not extended to cryptocurrency projects despite their technological innovations and growing institutional infrastructure.

Several developments could potentially shift this narrative. JPMorgan’s reported consideration of crypto trading services for institutional clients represents a significant potential catalyst, though no confirmed moves or official statements have materialised yet. This development, mentioned in market reports today, aligns with the broader trend of traditional financial institutions gradually embracing digital assets despite current market weakness. Additionally, Ethereum’s ecosystem shows signs of evolution following the Shanghai upgrade, which fundamentally altered the network’s economic dynamics by enabling withdrawals of staked ETH and altering validator behaviour. These infrastructure improvements may position Ethereum for stronger performance once market sentiment recovers.

Technical indicators suggest the cryptocurrency market has entered oversold territory, with Bitcoin’s 14-day Relative Strength Index reading at 32. Historically, such readings have often preceded meaningful rebounds, though timing such recoveries remains challenging. Market structure analysis reveals a critical liquidation cluster between US$84,000 and US$93,000, suggesting this range will determine Bitcoin’s next significant directional move. A decisive break below US$84,000 could trigger additional leveraged selling, while a sustained recovery above US$93,000 might restore bullish momentum.

The path to recovery for digital assets likely requires either renewed ETF inflows or a significant macroeconomic catalyst. Upcoming economic data releases, particularly Friday’s US Personal Consumption Expenditures inflation report, could prove pivotal. Higher-than-expected inflation figures might delay Federal Reserve rate cuts, potentially extending crypto’s risk-off tone as higher rates traditionally pressure growth assets. Conversely, cooling inflation data could reignite risk appetite across all asset classes, including cryptocurrencies.

This market environment creates opportunities for strategic positioning despite current weakness. The extended period of fear in the Fear & Greed Index has historically preceded market recoveries, though investors should await confirmatory signals before deploying capital aggressively. New cryptocurrency projects continue to generate interest alongside established coins, with tokens like APEMARS creating significant attention despite the broader market decline. This persistent innovation suggests underlying strength in blockchain development continues regardless of short-term price action.

As we approach year-end, investors face a complex landscape in which traditional and digital assets present divergent narratives. Strong economic data support equity markets while simultaneously pressuring expectations for monetary easing that could benefit alternative investments. Geopolitical tensions boost gold to record highs without translating to similar safe-haven demand for cryptocurrencies. Institutional capital shows caution through ETF outflows while simultaneously exploring expanded crypto services for clients.

The cryptocurrency market’s current consolidation phase may ultimately prove constructive, allowing overheated sentiment to normalise and creating a foundation for more sustainable growth. Technical oversold conditions, combined with historically low sentiment readings, suggest that a potential reversal may be approaching, though timing remains uncertain. Patient investors might view this period as an opportunity to build strategic positions while the broader market remains focused on traditional assets reaching record highs. The coming weeks will likely determine whether this divergence continues or if cryptocurrency markets reestablish correlation with the broader risk-on environment that has lifted global equities to new heights.

 

 

Source: https://e27.co/gold-hits-us4500-while-bitcoin-bleeds-the-year-end-market-disconnect-explained-20251224/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Why Bitcoin’s correlation with gold just hit a record high

Why Bitcoin’s correlation with gold just hit a record high

As the final full trading week of 2025 begins, financial markets across Asia are retreating under mounting doubts about the sustainability of the AI-driven tech rally that has powered global equities for much of the year.

The MSCI Asia Pacific index declined 0.7 per cent, with South Korea home to leading semiconductor firms and a bellwether for AI infrastructure demand falling 1.5 per cent after a tech-led selloff on Wall Street. Chinese equities also edged lower amid weak macro data, retail sales growth hit its lowest level since the pandemic, and fixed asset investment continued to slump. Meanwhile, US equity-index futures rose modestly by 0.2 per cent, hinting at potential stabilisation.

In this volatile mix, gold extended its rally for a fifth consecutive day, up more than 60 per cent year-to-date, while silver has more than doubled, both on track for their best annual performance since 1979. These moves reflect a broader shift in investor psychology away from speculative growth and toward capital preservation.

The cryptocurrency market, which surged dramatically through 2025 alongside tech equities, is now exhibiting signs of strain. Bitcoin and the broader market dipped 0.8 per cent in the past 24 hours, extending a 4.8 per cent monthly decline. This correction is not driven by a wave of selling but by a confluence of structural vulnerabilities, evaporating liquidity, collapsing sentiment, and an ongoing reset in leveraged positioning. Together, these forces are exposing the fragility beneath Bitcoin’s recent price stability.

A key red flag comes from on-chain data showing a sharp decline in Bitcoin exchange flows. According to CryptoQuant analysts, inter-exchange flows, the movement of BTC between trading venues, have slowed to levels not seen since 2018. This metric is critical because it reflects the activity of arbitrageurs and market makers who ensure consistent pricing and deep order books across platforms. When these flows dry up, exchanges become siloed, and liquidity thins.

The consequence is a market hypersensitive to even modest trades. Despite Bitcoin’s apparent calm, it has traded sideways between US$80,000 and US$94,000 since early December; the underlying mechanics have grown precarious. Exchange balances are already near historic lows, meaning there is little immediate sell pressure, but also minimal buffer to absorb shocks. In such conditions, price stability becomes illusory, and sharp, unexplained swings become more likely.

This liquidity crunch directly amplifies volatility risk. Spot trading volumes have plunged 36 per cent in 24 hours, while derivatives volume fell by 35.9 per cent. Thin order books mean slippage increases, and directional moves accelerate. Altcoins suffer disproportionately in such environments. Their market share, or altcoin dominance, has slipped to just 29.1 per cent, as traders rotate into Bitcoin, the perceived safest haven in crypto. Bitcoin’s dominance now stands at 58.6 per cent, underscoring a clear flight to quality within the digital asset space.

Sentiment has also deteriorated sharply. The Crypto Fear & Greed Index has dropped to 24 out of 100, nearing November’s extreme fear low of 16. Social media analysis reveals growing scepticism about Ethereum’s revenue model and the economic sustainability of Layer 2 ecosystems, two pillars of the post-merge narrative.

Investors are increasingly prioritising downside protection over yield or speculative upside. This shift is mirrored in the broader financial system. Stablecoin ETFs have seen US$9.97 billion in outflows this month alone, draining liquidity from risk assets and reinforcing a defensive posture across the board.

Simultaneously, the derivatives market is undergoing a necessary but painful deleveraging. Bitcoin liquidations surged by 1,528 per cent in 24 hours, reaching US$59.09 million, with 97 per cent stemming from long positions. These are largely leveraged bets placed during the October rally toward US$126,000 that are now being unwound. This is not a panic-driven collapse. Open interest in Bitcoin futures has actually increased by 9.8 per cent, suggesting new participants are likely entering with a bearish or neutral bias.

Funding rates, which had turned deeply negative, have rebounded to plus 0.001 per cent, indicating a temporary balance between buyers and sellers. According to CryptoQuant, the combined open interest and funding Z-score sits at minus 0.28, slightly below its historical average. This signals a gradual reduction in leverage rather than a disorderly liquidation cascade, a reset, not a rout.

This nuanced picture matters. The current market fragility stems not from overwhelming selling pressure but from a lack of active participation. Traders are avoiding large positions, liquidity providers have withdrawn, and sentiment has turned cautious. Long-term fundamentals remain intact.

Institutional adoption continues, on-chain supply dynamics stay favourable, and Bitcoin’s correlation with gold has spiked to an extraordinary plus 0.93 over the past 24 hours. This suggests a growing cohort of investors now views Bitcoin less as a tech proxy and more as a monetary asset, a development that could decouple it from Nasdaq-driven volatility over time.

For now, Bitcoin trades within a narrow US$87,892 to US$90,319 range. A break below US$88,000 could trigger cascading liquidations given the thin liquidity environment, while sustained trading above US$89,000 might attract spot buyers and signal renewed confidence.

The market stands at an inflexion point, where short-term fragility clashes with long-term strength. Until exchange liquidity recovers and sentiment stabilises, Bitcoin will likely remain susceptible to sharp, unpredictable swings, calm on the surface, but increasingly brittle underneath.

 

Source: https://e27.co/why-bitcoins-correlation-with-gold-just-hit-a-record-high-20251215/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j