As a seasoned crypto investor with a decade of experience under my belt, I have witnessed numerous market cycles and trends, some bullish, others bearish. However, the current Bitcoin (BTC) rally is unlike anything I’ve ever seen before. The daily ATH shattering, the surging institutional interest, and the resilient market environment are all indicators of a robust and thriving digital economy.


Over the past week, I’ve witnessed bitcoin (BTC) surpassing its previous March high of $73,737, with the crypto market buzzing following Donald Trump’s victory in the U.S. presidential elections. Since then, it seems like a new all-time high is being set almost daily; at the moment of writing, its value had reached an astounding $87,100, having been turned away at $90,000.

Even as Bitcoin surges and hits new highs, I find myself hesitant to cash out my investments. Contrary to past occurrences when BTC went beyond $70,000, the volume of profit-taking among us investors seems notably lower, according to Bitfinex analysts. Despite a rise in overall profit-taking, it appears that many of us are holding on to our gains, potentially signaling a bullish sentiment and anticipation for even higher prices.

Investor Profit-taking is Low

Based on a recent report from Bitfinex Alpha, it appears that fewer investors are choosing to cash out their gains. However, this trend isn’t causing significant disruption, as new demand in the market is effectively managing any minor sell-offs. This points towards a more robust and balanced market condition.

The surge in interest and investment is evident in the significant influx into Bitcoin exchange-traded funds (ETFs) based in the U.S., which reached an all-time high last week. Over the initial three days following the U.S. elections, these products attracted a total of $2.28 billion.

On November 7th, BlackRock’s IBIT fund experienced inflows totaling $1.1 billion, a reversal from outflows on the 5th and 6th of the same month. It appears that these earlier outflows were due to investors reducing their risk ahead of the election. Then, on November 11th, the ETFs as a whole received inflows worth $1.12 billion, with IBIT gathering over $763 million.

After the elections, there’s been a noticeable rise in demand for immediate purchases, as evidenced by the Aggregated Spot Cumulative Volume Delta (CVD) measure. This metric tracks buying and selling activity across major trading platforms. Notably, this metric has experienced a substantial jump, suggesting that the appetite for purchasing on centralized exchanges is expanding rapidly.

BTC to Continue Upward Momentum

Alongside increased investments in Exchange Traded Funds (ETFs) and purchases directly from cryptocurrency exchanges, the value of open interests for Bitcoin futures and continuous trading contracts has reached a record high of $45.43 billion.

In earlier issues of Bitfinex Alpha, we’ve pointed out that substantial Open Interest (OI) levels can suggest a lot of speculative leveraged buying. However, it’s important to note that high OI readings don’t always indicate a bearish market. Just like prices, OI levels can fluctuate as investors search for the optimal pricing point, not necessarily pointing towards a downward trend. Bitfinex emphasized this point.

According to Bitfinex, increased investor enthusiasm, growing institutional involvement, and a fresh influx of demand give the market enough strength to maintain its positive trajectory over the short term.

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2024-11-12 15:50