Bitfinex Reports “Sellers Have Lost Momentum” as Bitcoin Price Rises

The price of Bitcoin has rebounded strongly this week, rising nearly 8% in a single day, as analysts point to signs that the bottom of this cycle may be forming in the market.

In a note published Tuesday, Bitfinex said the market was showing signs of “sellers’ exhaustion” after a period of massive liquidations of leveraged trades and exits of short-term investors as panic set in.

“A combination of massive liquidations of leveraged trades, short-term currency holders abandoning their holdings and early signs that sellers are running out of steam, has created the conditions for a stabilization and rebound phase,” the firm claimed.

The price of Bitcoin reached $94,000 after the liquidation of leveraged trades worth $19 billion, according to the Bitfinex platform.

This comment came ahead of Wednesday’s rally, which briefly pushed the price of Bitcoin towards the $94,000 level, trading at around $91,440 at the time of writing according to CoinMarketCap.

Bitfinex also argued that the market now operates on a “lighter leverage basis,” reducing the risk of mass liquidations. The move follows a violent market correction last October, when around $19 billion was liquidated, which traders described as the result of excessive leverage.

This sharp decline led to a bear market cycle that pushed the price of Bitcoin to a low around $82,000 in late November. For its part, the platform indicated that with the disappearance of excessive risks, the remaining leveraged transactions seem more logical, which helped to alleviate the pressure on prices and increase the possibilities of entering a phase of relative stability.

The rebound later in the year also fuels debate over whether Bitcoin’s famous four-year cycle is losing its significance. According to old models, the peak of the cycle should have already passed in October, when prices reached unprecedented levels, close to the level of 125,100 dollars.

However, the recent rebound has complicated these debates, with some market observers saying the structure of this cycle appears different from previous ones, with seasonal trends providing no clear answers. December has long been one of the most notable months in which Bitcoin’s price trajectory has been relatively calm, posting an average gain of 4.69% since 2013, according to figures from CoinGlass.

But this year, the usual pattern was broken, closing out November – which is usually one of the best performing months – with steep losses exceeding 17%. On the other hand, many analysts maintained their optimism, with market analyst PlanC writing on the

Cathie Wood expects liquidity to return to crypto market

Cathie Wood, CEO of ARK Invest, expects the coming weeks to see a reversal of the liquidity decline hitting the cryptocurrency and AI markets, driven by three potential changes in Fed policy before the end of the year.

His firm continues to buy crypto stocks heavily during the downturn, pumping in more than $93 million in one day this week thanks to digital asset stocks that have been exposed to declines.

Speaking at the ARK Markets Webinar in November, she identified three temporary restrictions on liquidity, which she hopes to ease quickly through Fed action and the return of government spending.

Wood expects the Fed to end its liquidity tightening policy at its Dec. 10 meeting, which would immediately relieve one of the pressure points. The end of the government shutdown, which caused the accumulation of liquidity in the Treasury’s general account, contributed to the return of funds to circulation and support liquidity in the markets.

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