A weaker dollar index is a key driver of Bitcoin's gains

BTC fell and rebounded during the day, and may try to break through again.

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On December 1, just one day after Bitcoin hit a record high of 19,888 USDT, the price suddenly dropped to 18,132.02 USDT the next night. Bitcoin experienced a roller coaster ride with sharp rises and falls, falling by 1,600 USD in a short period of time, and then rebounding quickly to above 19,200 USD. As of 18:00 on December 2, Bitcoin was quoted at 19,260 USD, a daily increase of 2.5%.

How do you view this "roller coaster" market? Huobi Observation believes that no matter what the market situation is, it should be noted that digital assets represented by Bitcoin are still in the early stages, and high volatility and high risk are their basic characteristics. The recent drastic market adjustments are also in line with the general law of high-level adjustments. Too fast a rise actually contains greater risks.

Since October this year, the Bitcoin trading market has changed from being dominated by retail investors to being dominated by large investors and institutions. This is a major structural change in the trading market since the birth of Bitcoin. With the entry of institutional investors, Grayscale and other institutional investors have become the "engine" of Bitcoin's rise. Recently, many traditional Wall Street capitals have applied to the US SEC for approval to invest in Bitcoin funds.

Huobi Observer believes that the long-term buying behavior of institutional investors stems from the increasing demand of institutions for macro risk hedging. Behind this reflects a phenomenon, namely, the global central bank is "flooding the market", the US dollar index is weakening, and the market predicts that high inflation may occur next year. The actual yields of assets such as bonds will be very small or even negative, making Bitcoin an important asset target for overseas institutions.

BTC fell and rebounded during the day, or tried to break through again

According to the data from Huobi trading platform, BTC continued its downward trend in the morning, reaching a low of 18324.50 USDT, and then began to rebound. It has basically returned to 2/3 of the decline last night. At the one-hour level, BTC set a new record high last night, reaching a high of 19888 USDT, and then began to pull back quickly, falling more than 1,000 points in two hours. It is currently recovering slightly, and may start a new round of upward trend. At the daily level, BTC fell slightly, but it is still at an absolute high. In the evening, continue to pay attention to changes in trading volume and the breakthrough of 19400 above and the support of 18500 below.

According to the data from Huobi trading platform, ETH also continued its morning decline, reaching a low of 575USDT, and then rebounded slightly. It is currently fluctuating and consolidating at 595. On an hourly basis, ETH broke through last night and reached a recent high of 635USDT, then quickly fell back, received support at 575, and then began to fluctuate and consolidate. On a daily basis, ETH's decline today basically reversed yesterday's gains, but it is still at an absolute high. In the evening, continue to pay attention to changes in trading volume and the breakthrough of 610 above and the support of 580 below.

In terms of contracts, Huobi contract big data shows that BTC contract holdings have slightly decreased, contract trading volume has slightly increased, and the contract market is active. The basis of delivery contracts has slightly increased, and the funding rate of perpetual contracts has slightly decreased.

ETH contract open interest decreased slightly, contract trading volume increased slightly, and the contract market was active. The basis of delivery contracts decreased slightly, and the funding rate of perpetual contracts decreased slightly.

The price of USDT in Huobi Global OTC market is 6.45 yuan.

According to Huobi Research Center data monitoring, today's DeFi total locked volume (TVL) rose slightly to $17.45 billion, and the real locked volume rose slightly to $11.76 billion. Among them, the head projects did not change much. Today's total DeFi transaction volume fell slightly to $723 million. Among them, 1inch V2 rose significantly, reaching 26.31%.