After seemingly inevitable advances to a record-breaking $100,000 loss momentum, the Bitcoin Bulls began to express some questions. “While we see strong institutional buying pressure, especially from entities like MicroStrategy’s continuous accumulation strategy, the wider crypto ecosystem is experiencing diversification of capital flows from institutional and non-institutional players,” said Chris Newhouse, research director at Cumberland Laboratory.
As the price plateau of Bitcoin, interest in other digital assets is rising, such as the second-largest cryptocurrency Ether and XRP, which lag behind the original cryptocurrency after the victory of President-elect Donald Trump. The former president has become a cryptocurrency advocate, raising expectations for a friendly U.S. for often controversial asset classes.
According to data compiled by Bloomberg, the group of trade funds for Bitcoin and Ethereum exchanges had net monthly inflows in November, at $6.5 billion and $1.1 billion, respectively. Friday’s daily Ether ETH ETF subscription also hit an all-time high.
“After six weeks of positive inflows, we have seen a week of sales and derivatives traders use demand as macro specifications for directions,” Fadi Aboualfa, head of research at Copper Technologies Ltd., said in a message Monday. “Early Bitcoin ETF investors may be keen to rebalance their portfolios and double their funds.”
Options Market
At the same time, according to Coinglass data, Bitcoin futures have moderate leverage when expiration later this month, and Bitcoin futures have higher leverage ratios. After digital assets reaching $99,000, Bitcoin futures have higher leverage ratios, and Bitcoin futures have more downside protection in the later this month.
“The chain data points to the positive profit realization of traders in the mid-term queue (traders who buy in the 55k-70k range), while BTC trading is especially strong in trades north of 90K,” said Vetle Lunde, research director at K33 Research, a digital asset research firm.
Lund said the metric is an estimate that tracks the chain-chain movement of Bitcoin, which is classified by prices in the last movement. However, it is rare to see such an important concentration in a price queue, so it points to that queue is particularly active at current prices.
Open interest in Bitcoin options and futures contracts has been at a standstill level after a large amount of liquidation in recent weeks.
“In the past 10 days, the market has stopped because Bitcoin is at less than 100K. “VOL has been slightly compressed to the 64th percentile, while Ether has a significantly higher holding rate in the 81st percentile,” said Jake Ostrovskis, a Wintermute OTC trader. ”
Blockchain analytics firm Arkham added a post about X to X, which said it had transferred about $2 billion worth of Bitcoin from a former Silk Road website from the U.S. government wallet to Coinbase Exchange. Prices are usually low when traders speculate that a large number of bitcoins may be listed immediately.
Bitcoin has a stable $95,734 as of 9:33 am in Singapore on Tuesday. On November 22, it hit a record $99,728.
©2024 Bloomberg LP
