Bitcoin (BTC) hit a brand new all-time excessive on November 6 and is poised for one more surge, pushed by giant institutional and retail capital inflows and rising market volatility, in response to the most recent “Week On-chain” report from Glassnode.
This historic improve comes amid month-to-month web capital inflows totaling $2.5 billion, rising Bitcoin's market realized cap – a key metric indicating web capital funding – by 3.8% over the previous few years. Final 30 days.
The realized cap now stands at a report $656 billion, fueled by new capital coming into the market.
Choices producing volatility
The choices market mirrored Bitcoin's bullish momentum, with open curiosity close to report highs at $25.2 billion, slightly below the all-time excessive of $30.2 billion seen in March.
On the similar time, choices buying and selling quantity additionally jumped to $2.9 billion, reflecting elevated investor curiosity in Bitcoin's future worth actions. The report notes {that a} almost even break up between places and calls signifies that traders are making ready for each potential positive factors and draw back dangers.
The report additionally highlights that the volatility threat premium (VRP) now stands at 27.9%, indicating that merchants anticipate substantial worth swings forward. This excessive implied volatility for short-term Bitcoin choices displays a market bracing for turbulent motion, an indication that the crypto area might see additional positive factors or worth swings within the days to come back.
Demand for ETFs stays robust
Demand for Bitcoin-based ETFs, which have been a major driver of capital inflows, confirmed combined tendencies this week.
U.S.-listed Bitcoin ETFs noticed outflows of almost $658 million between November 4 and 5, attributed to investor warning over potential post-election market volatility. Nevertheless, greater than $2.2 billion in inflows have been recorded over the previous week, reflecting continued investor curiosity in these merchandise as Bitcoin costs rise.
In the meantime, ETFs noticed vital buying and selling quantity on November 6, with BlackRock's IBIT recording over $1 billion in buying and selling quantity within the first 20 minutes of buying and selling. Analysts say this may very well be an indication that final week's robust capital inflows will proceed within the coming days.
In accordance with Glassnode, reaching a brand new all-time excessive might entice extra ETF traders, particularly these attracted by Bitcoin's robust bullish momentum.
