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, in response to 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 recent capital coming into the market.
Choices driving volatility
The choices market has mirrored Bitcoin’s upward momentum, with open curiosity ranges nearing document 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 worth actions. The report famous {that a} near-even break up between put and name choices signifies buyers are making ready for each potential features and draw back dangers.
The report additionally highlighted that the volatility threat premium (VRP) now sits at 27.9%, indicating that merchants anticipate substantial worth swings forward. This elevated implied volatility for short-term Bitcoin choices displays a market bracing for turbulent motion, an indication that the crypto house might witness additional worth features or fluctuations within the days to come back.
ETF demand stays robust
Demand for Bitcoin-based ETFs, which have been a major driver of capital inflows, confirmed blended traits this week.
US-listed Bitcoin ETFs noticed outflows of practically $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 had 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 inside the first 20 minutes of buying and selling. Analysts consider this could possibly be an indication that the robust inflows from the previous week will proceed within the coming days.
In response to Glassnode, the achievement of a brand new all-time excessive may appeal to extra ETF buyers, significantly these drawn to Bitcoin’s robust upward momentum.
