Increased demand and heightened volatility signal further upside for Bitcoin – Glassnode

Bitcoin (BTC) soared to a new all-time high on Nov. 6 and is poised for further upside, spurred by significant institutional and retail capital inflows and rising market volatility, according to Glassnode’s latest “Week On-chain” report.

The landmark surge comes amid monthly net capital inflows totaling $2.5 billion, lifting Bitcoin’s market Realized Cap — a key metric indicating net capital investment — by 3.8% over the past 30 days.

The Realized Cap now stands at a record-breaking $656 billion, fueled by fresh capital entering the market.

Options driving volatility

The options market has mirrored Bitcoin’s upward momentum, with open interest levels nearing record highs at $25.2 billion, just shy of the all-time peak of $30.2 billion seen in March.

Meanwhile, options trading volume has also jumped to $2.9 billion, reflecting heightened investor interest in Bitcoin’s future price movements. The report noted that a near-even split between put and call options indicates investors are preparing for both potential gains and downside risks.

The report also highlighted that the volatility risk premium (VRP) now sits at 27.9%, indicating that traders expect substantial price swings ahead. This elevated implied volatility for short-term Bitcoin options reflects a market bracing for turbulent action, a sign that the crypto space may witness further price gains or fluctuations in the days to come.

ETF demand remains strong

Demand for Bitcoin-based ETFs, which have been a significant driver of capital inflows, showed mixed trends this week.

US-listed Bitcoin ETFs saw outflows of nearly $658 million from Nov. 4 to Nov. 5, attributed to investor caution around potential post-election market volatility. However, over $2.2 billion in inflows were recorded over the entire past week, pointing to sustained investor interest in these products as Bitcoin prices surge.

Meanwhile, the ETFs saw significant volume on Nov. 6, with BlackRock’s IBIT recording over $1 billion in trading volume within the first 20 minutes of trading. Analysts believe this could be a sign that the strong inflows from the past week will continue in the coming days.

According to Glassnode, the achievement of a new all-time high could attract more ETF investors, particularly those drawn to Bitcoin’s strong upward momentum.

The post Increased demand and heightened volatility signal further upside for Bitcoin – Glassnode appeared first on CryptoSlate.

  • Related Posts

    VanEck files S-1 application to launch spot AVAX ETF

    VanEck has submitted an S-1 registration statement to the US Securities and Exchange Commission (SEC) for a proposed Avalanche exchange-traded fund (ETF), aiming to provide investors with direct exposure to…

    Continue reading
    Excessive fundraising weakens VC confidence in crypto startups despite regulatory improvements

    Venture capital funding for crypto startups has yet to rebound in line with recent regulatory clarity in the U.S. despite showing signs of recovery in the months following President Donald…

    Continue reading

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    No More Relying on Crypto Mining: 6 Ways to Make Money and Boost Your Return On Investment

    No More Relying on Crypto Mining: 6 Ways to Make Money and Boost Your Return On Investment

    VanEck files S-1 application to launch spot AVAX ETF

    VanEck files S-1 application to launch spot AVAX ETF

    Excessive fundraising weakens VC confidence in crypto startups despite regulatory improvements

    Excessive fundraising weakens VC confidence in crypto startups despite regulatory improvements

    Argentina introduces new regulatory framework for stringent crypto oversight

    Argentina introduces new regulatory framework for stringent crypto oversight

    Democrat lawmaker calls on Treasury to abandon Trump’s Bitcoin reserve plans

    Democrat lawmaker calls on Treasury to abandon Trump’s Bitcoin reserve plans

    Tether to benefit greatly from current US stablecoin regulation

    Tether to benefit greatly from current US stablecoin regulation