**[Bitfinex Alpha Report: Crypto Market Nearing Local Bottom, Recovery Conditions May Emerge in Q4]** The latest Bitfinex Alpha report indicates that the crypto market is approaching a local bottom from a time perspective, although whether prices have fully bottomed out remains to be seen. Signs such as extreme deleveraging, short-term holders selling off, and the exhaustion of selling pressure suggest that the market is stabilizing. On-chain data shows that the adjusted Spent Output Profit Ratio (aSOPR) has fallen below 1 for the third time since early 2024, aligning with the cyclical lows of August 2024 and April 2025. Entity-adjusted realized losses have surged to $403.4 million per day, surpassing previous major low levels, indicating that the sell-off is nearing its end. Bitcoin futures open interest has dropped to $59.17 billion, significantly lower than the peak of $94.12 billion. Leverage has been systematically cleared, and the contraction in open interest, coupled with rising spot prices, suggests that short covering is dominating the market. BlackRock's filing with the U.S. SEC reveals that its Strategic Income Opportunities Portfolio increased its holdings in the Bitcoin Investment Trust (IBIT) by 14%, bringing total holdings to 2.39 million shares.