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Bitcoin Black Friday: Tether CEO Reacts to BTC’s Surprising Crash Below $100,000

Bitcoin Falls Below $95,000 Amid Market Risk Aversion and ETF Outflows

Bitcoin slipped below the $95,000 mark for the first time in nearly six months as a wave of risk aversion swept across global markets. Investors pulled nearly $900 million from exchange-traded funds (ETFs), intensifying the recent sell-off. On Friday, Bitcoin dipped to a low of $94,455, extending its decline from the November 11 high of $107,482 into the fourth consecutive day.

With this downturn, Bitcoin is on the brink of erasing its gains for the year, having dropped as much as 7% in the last 24 hours. The cryptocurrency reached a record high of $126,251 in early October but ended the previous year, 2024, at $93,714.

“Bitcoin Black Friday,” Tether CEO Paolo Ardoino tweeted in response to the surprising price drop.

### Significant Liquidations Shake the Crypto Market

The broader crypto market sell-off has triggered more than $1.38 billion in liquidations, with about half occurring on Bitcoin trading pairs, according to data from CoinGlass. Bitcoin alone accounted for $676 million of liquidations. The largest single liquidation was a $44 million long position on BTC at HTX.

This recent market strain follows a major liquidation event on October 10, which wiped out $19 billion and erased over $1 trillion from the total market value of all cryptocurrencies. CoinGlass data reveal that the recent liquidations heavily impacted long positions, totaling $1.21 billion, while shorts amounted to $157.36 million. Overall, 278,152 traders were affected by the latest downturn.

### Market Factors and Tether’s Rising Dominance

Economic data from China and diminishing hopes for a Federal Reserve rate cut contributed to the negative momentum in both the crypto and equity markets. Meanwhile, Tether’s (USDT) dominance rate has reached its highest level since April. This trend is notable because surges in USDT dominance are often seen as a key indicator of Bitcoin bear markets.

### Is Bitcoin Entering a Bear Market?

Despite the sell-off, CryptoQuant CEO Ki Young Ju advises caution before declaring a Bitcoin bear market. He notes that many investors who entered Bitcoin 6 to 12 months ago have a cost basis near $94,000.

“Personally, I do not think the bear cycle is confirmed unless we lose that level. I would rather wait than jump to conclusions,” Ki stated.

As Bitcoin hovers near this critical support level, traders and investors will be closely monitoring whether it holds or breaks, which could determine the market’s direction in the near term.
https://bitcoinethereumnews.com/bitcoin/bitcoin-black-friday-tether-ceo-reacts-to-btcs-surprising-crash-below-100000/

Brandt Warns Bitcoin Could Dip Below Strategy’s Average Buy Price as MSTR’s mNAV Falls

Peter Brandt Predicts Bitcoin Could Drop Below $50,000 Amid Market Downturn

Veteran trader Peter Brandt has raised the possibility that Bitcoin’s price might fall below the average purchase price held by Michael Saylor’s company, Strategy. This prediction comes amid a recent BTC price crash below the $100,000 mark, alongside declines in Strategy’s market metrics.

Brandt highlighted on X (formerly Twitter) that if the recent breakdown of Bitcoin’s parabolic advance mirrors previous patterns, the downside target could be under $50,000. He questioned at what price point Strategy’s Bitcoin holdings might go underwater, suggesting that the flagship cryptocurrency could face severe tests ahead.

Currently, Strategy’s average purchase price for its Bitcoin holdings is $74,079. A drop below $50,000 would push the company’s position underwater. Despite the market dip, Strategy recently announced another purchase of 487 BTC for $49.9 million, showing continued conviction in Bitcoin.

BTC Price and Strategy’s Market Performance

Following Bitcoin’s decline below $100,000, with the current trading price around $95,000, concerns about a potential bear market have intensified. Strategy’s stock price has also taken a hit, dropping below $200 and reducing the company’s market capitalization to approximately $60 billion.

As a result, Strategy’s mNAV (market Net Asset Value) has fallen below 1. This means the company’s market cap is now below the value of its Bitcoin holdings, which stand at about $61 billion at current prices. Strategy’s stock is down over 30% year-to-date, despite reaching a high near $455 earlier this year. Over the past six months alone, the stock has declined by 47%.

Additional Market Insights and Analyst Opinions

Crypto analyst Ali Martinez echoed Brandt’s bearish outlook, predicting that Bitcoin could bottom between $38,000 and $50,000. He based this on the cryptocurrency’s typical four-year cycle and stated that BTC may already be in a bear market phase.

However, not all experts agree. CryptoQuant CEO Ki Young Ju countered the bear market narrative, emphasizing that Bitcoin is not in a bear market as long as capital continues to flow into the asset. He pointed out that inflows are ongoing and suggested that BTC’s price could rebound if major long-term holders (often referred to as “OG whales”) stop selling and if macroeconomic sentiment shifts positively.

According to CryptoQuant’s analysis, the current Bitcoin correction is mainly driven by U.S. liquidity stress, tax-driven profit-taking among long-term holders, and persistent selling pressure from American investors. This underscores that the recent downward pressure largely stems from developments within the United States.

Conclusion

Peter Brandt’s warning about a potential Bitcoin price drop below $50,000 adds to growing uncertainty in the crypto market amid notable declines in BTC and related equities like Strategy’s stock. While some analysts see this as a bear market phase, others remain cautiously optimistic, highlighting ongoing capital inflows and the possibility of a recovery.

Investors should monitor market conditions carefully and consider both technical signals and broader economic factors before making decisions.
https://bitcoinethereumnews.com/bitcoin/brandt-warns-bitcoin-could-dip-below-strategys-average-buy-price-as-mstrs-mnav-falls/

AAVE: Will the $50mln buyback plan repeat the 50% price surge?

**Key Takeaways**

– Why has Aave made token buyback official?
The team stated that the trial initiative was a “strong success” in improving AAVE value accrual.

– Will it lift the token above $200 again?
Yes, under a positive broader market sentiment, the deflation plan could boost AAVE in the long run.

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DeFi lending giant Aave (AAVE) has unanimously approved the creation of a $50 million per year buyback program. This move follows what the project described as a “strong success” after a pilot test initiated in May, aimed at improving the tokenomics of the AAVE token.

According to the plan, the team intends to purchase between $250,000 and $1.75 million worth of AAVE tokens weekly, based on protocol revenue and other factors. There are still two additional steps before the proposal can be fully enforced.

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### AAVE Buybacks and Potential Impact

Since May, the buyback initiative has acquired over 94,000 AAVE tokens, spending more than $22 million in the process. May marked the largest monthly purchase during the trial program, with the team adding 20,100 AAVE tokens.

During the same period, AAVE posted price gains of over 50%, partly fueled by a broader market recovery in Q2. From July to October, the team averaged about 10,000 AAVE tokens purchased monthly.

This deflationary move, combined with the broader market recovery, pushed AAVE prices up to $385 by August. However, headwinds in Q4 dragged the token’s value below $200 despite the ongoing buyback program.

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### ETH Correlation Drives AAVE Swings

AAVE’s value demonstrates a strong positive correlation with Ethereum (ETH). During ETH rallies, AAVE tends to pump even harder. Conversely, during ETH pullbacks, AAVE experiences steeper declines.

As ETH serves as a bellwether for the broader DeFi ecosystem, its momentum often influences sector outliers like AAVE. A rebound in ETH could potentially lift AAVE if this correlation continues to hold.

That said, AAVE has faced selling pressure since the October flash crash, which has weighed on price performance recently.

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### Exchange Inflows Add More Pressure

Data from CryptoQuant shows that exchange netflow for AAVE surged to a seven-month high last month, with approximately 10,000 AAVE tokens sent to exchanges weekly for sell-off.

Unless this selling pressure from exchanges tapers off, AAVE’s price may remain subdued in the short term.

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### Conclusion

Overall, AAVE has experienced selling pressure alongside the wider market. However, the scaling of its deflationary buyback program could enhance its value over the long term, especially if positive market sentiment and ETH momentum return.

Stay tuned for further developments as the buyback program progresses and market conditions evolve.
https://bitcoinethereumnews.com/tech/aave-will-the-50mln-buyback-plan-repeat-the-50-price-surge/