CoinDesk 20 Index: 3,839.11 -3.6%
Bitcoin (BTC): $97,998.29 -4.85%
Ether (ETH): $3,866.46 -1.81%
S&P 500: 6,075.11 -0.19%
Gold: $2,640.56 +0.6%
Nikkei 225: 39,091.17 -0.77%

Bitcoin traded around $98,000 during the European morning having rebounded from a nosedive to nearly $92,000 earlier. BTC futures recorded almost $500 million in net liquidations, with $420 million of those stemming from longs, or bets on higher prices. The swoon pulled down other major tokens, with ETH, SOL, DOGE and XRP all in the red. Futures tracking DOGE and XRP logged a cumulative $50 million in losses as prices reversed from a multiweek rally in both tokens that sent open interest on their futures to record highs last month. The drop caused the popular crypto fear and greed sentiment index to fall to “greed” from “extreme greed,” its lowest level in over 30 days.

Bitcoin and ether ETFs both recorded substantial inflows on Thursday, with the latter seeing a highest-ever figure of $428.5 million. The inflow was dominated by BlackRock's ETHA, which collected a net $292.7 million, also a record. In the past five days, the ether ETFs have seen almost $800 million in net inflows, according to data from Farside Investors. Bitcoin ETFs saw inflows of $766.7 million, the most since Nov. 21. The flows were dominated by BlackRock's IBIT, which added $770.5 million in net inflows. IBIT has now taken in $2.5 billion in five days, the most among any ETF, according to Bloomberg's Eric Balchunas.

BTC's ascent above $100,000 on Thursday was the culmination of a number of post-U.S. election tailwinds, Citi said in a research report. "The nomination of digital asset-friendly Paul Atkins to chair the SEC provided the final boost," that saw bitcoin break through $100,000 to record highs, analysts led by Alex Saunders wrote. The macro environment is also constructive for digital assets. Loose financial conditions and resilient growth are positive for crypto tokens, Citi said. "Other digital assets likely have more to gain from a more permissive regulatory environment," the authors wrote, noting that bitcoin's dominance has fallen. More permissive crypto policies should broaden the asset class, Citi said, but bitcoin, which has already been classified as a commodity, and has both a spot ETF and a futures contract, has less to gain than other tokens.

Traders looking to impulsively take exposure to bitcoin at record prices due to a "fear of missing out" (FOMO) should note that the market now looks notably confused, a shift away from the recent strong bull momentum.

BTC's surge to a record high of over $104,000 followed by a slide of more than 10% formed a "high wave candle," characterized by a small real body that shows the gap between the open and closing prices, along with large shadows (wicks) that reflect unusually wide price swings throughout the day.

It's a sign that the bulls now have less than full control, with sellers looking to reassert themselves and serves as a cautionary indicator for those looking to chase the market right now. This signal becomes even more significant given that the pattern has appeared at record highs, representing a failure to maintain gains above the closely watched $100,000 mark.

The high wave candle, coupled with the bearish divergence of the relative strength index, a momentum indicator, points to consolidation or a temporary bearish shift in the market trend.

- Omkar Godbole