Last week, there were significant net outflows for BTC and ETH on the last two trading days, leading to a sharp market adjustment.
The market closely watches the inflow and outflow trends of BTC and ETH ETFs. This week, a shift from net outflows to net inflows is expected, which should lead to a corrective rally in the market due to the ETF inflows.
Holiday Impact: As Christmas approaches, liquidity in both capital and cryptocurrency markets is likely to decrease.
However, post-Christmas, market activity typically picks up again, with funds expected to actively position for sectors that might benefit from Trump’s upcoming inauguration.
Assets related to BTC and World Liberty Finance are anticipated to see a resurgence after Christmas.
Futures Contract Data: Last week’s significant market drop led to $3 billion in liquidations across the board, creating short-term panic.
Currently, most assets are showing negative funding rates, with the funding rates for major assets like BTC and ETH dropping to around 10% annualized, returning to normal levels.
From the futures market perspective, this week is likely to see a market recovery.
In summary, the expected trading range for BTC and ETH this week is 94,000-105,000 and 3,200-3,800 respectively.
Ryan Lee, Chief Analyst at Bitget Research
