Bitfinex Alpha #157 - Community Summary

Bitfinex Alpha: Volatile Markets Expected

📄 Read the full Bitfinex Alpha report in English here:

https://blog.bitfinex.com/wp-content/uploads/2025/06/Bitfinex-Alpha-157-1.pdf

Or explore the key highlights from this edition below:

Macroeconomic Factors

Bitcoin is undergoing its first significant correction since April’s lows, cooling off after a 50% rally that pushed it from $74,501 to a new All-Time High of $111,880. This retracement coincides with macroeconomic pressures, including a US Court of Appeal decision pausing a lower court’s ruling on the legality of certain US tariffs. The ruling triggered a surge in 30-year Treasury yields above 5%, sparking a wave of risk-off sentiment.

In derivatives markets, open interest in Bitcoin options has reached a record $49.4 billion, highlighting increased institutional activity as traders position for volatility. The Relative Unrealised Profit indicator has also entered a historically euphoric zone, which often precedes heightened volatility and local tops.

Despite these developments, Bitcoin’s structural fundamentals remain strong. The correction appears to be a healthy reset driven by leverage flushing and profit-taking, rather than a breakdown.

The US economy, however, shows increasing signs of strain. Consumer spending declined in April, reflecting a shift towards saving amidst concerns over tariff impacts. Business activity is slowing, with a 20% drop in imports and a 1.3% fall in core capital goods orders—both signs of growing corporate caution.

The labour market is weakening, with jobless claims reaching their highest level since 2021. Firms are freezing hiring plans, and corporate profits dropped significantly in Q1. While consumer sentiment improved slightly in May, overall confidence remains fragile.

Crypto Industry Developments

GameStop made headlines by allocating $513 million into Bitcoin, marking a strategic move towards financial diversification despite limited crypto experience. The announcement reflects the growing trend of corporations integrating BTC into treasury strategies, though investor concerns about volatility remain.

The Tether Group and Bitfinex also demonstrated growing institutional confidence in digital assets through a significant investment in Twenty One Capital (XXI). In total, over 25,000 BTC were transferred to a public wallet—14,000 BTC from Tether and 7,000 BTC from Bitfinex—as part of this strategic move. These transfers underscore the group's long-term commitment to supporting innovation in the crypto space.

The US Department of Labor reversed its 2022 guidance that discouraged cryptocurrency investments in 401(k) retirement plans. This new neutral stance allows fiduciaries greater flexibility to assess crypto as a potential retirement asset.

Internationally, the Bank of Russia authorised financial institutions to offer non-deliverable crypto-linked instruments to qualified investors. This cautious approval indicates increasing acceptance of digital assets in traditional financial systems.

📊 Check out the full Bitfinex Alpha report in English:

https://blog.bitfinex.com/wp-content/uploads/2025/06/Bitfinex-Alpha-157-1.pdf

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