Bitcoin (BTC) soared to a brand new all-time excessive on Nov. 6 and is poised for additional upside, spurred by vital institutional and retail capital inflows and rising market volatility, based on Glassnode’s newest “Week On-chain” report.
The landmark surge comes amid month-to-month web capital inflows totaling $2.5 billion, lifting Bitcoin’s market Realized Cap — a key metric indicating web capital funding — by 3.8% over the previous 30 days.
The Realized Cap now stands at a record-breaking $656 billion, fueled by contemporary capital getting into the market.
Choices driving volatility
The choices market has mirrored Bitcoin’s upward momentum, with open curiosity ranges nearing file highs at $25.2 billion, simply shy of the all-time peak of $30.2 billion seen in March.
In the meantime, choices buying and selling quantity has additionally jumped to $2.9 billion, reflecting heightened investor curiosity in Bitcoin’s future value actions. The report famous {that a} near-even break up between put and name choices signifies traders are getting ready for each potential features and draw back dangers.
The report additionally highlighted that the volatility danger premium (VRP) now sits at 27.9%, indicating that merchants count on substantial value swings forward. This elevated implied volatility for short-term Bitcoin choices displays a market bracing for turbulent motion, an indication that the crypto house could witness additional value features or fluctuations within the days to return.
ETF demand stays sturdy
Demand for Bitcoin-based ETFs, which have been a major driver of capital inflows, confirmed blended tendencies this week.
US-listed Bitcoin ETFs noticed outflows of almost $658 million from Nov. 4 to Nov. 5, attributed to investor warning round potential post-election market volatility. Nevertheless, over $2.2 billion in inflows have been recorded over the whole previous week, pointing to sustained investor curiosity in these merchandise as Bitcoin costs surge.
In the meantime, the ETFs noticed vital quantity on Nov. 6, with BlackRock’s IBIT recording over $1 billion in buying and selling quantity throughout the first 20 minutes of buying and selling. Analysts imagine this could possibly be an indication that the sturdy inflows from the previous week will proceed within the coming days.
Based on Glassnode, the achievement of a brand new all-time excessive might entice extra ETF traders, significantly these drawn to Bitcoin’s sturdy upward momentum.