Bitcoin (BTC) has had a great November so far, and many analysts believe that the future of this groundbreaking cryptocurrency is still bright.
The current price is $ 16,000, and since the beginning of the month the price has increased by 23%, especially after the end of the US presidential election. SpotBitcoins volume has now surpassed all previous records in 2020, indicating the growing demand for bitcoins.
A strong rally of $ 16,200 pushed Bitcoin’s spot volume over 270% in the past month. According to a recent report by Arcane Research, daily volume on November 5 was at its highest since the collapse of Black Thursday, as BTC’s price fell below $ 4,000 on March 13.
Real daily BTC volume. Source: Arcane Research
Market sentiment has also reached record levels, and this is clearly reflected in the Crypto Fear & Greed Index, which is currently at 86, and reflects the extreme greed in the market.
Fear and greed index (daily). Source: Data on digital assets.
Many experienced investors counter the cue from the index, as “extreme greed” reflects fear of chaos – or euphoria in the market and a sign of profit.
Enterprise size continues to grow
Not only did the spot volume of Bitcoin reach its 2020 highs, but institutional interest was also fierce during November when several well-known and wealthy companies invested in Bitcoin.
Open interest in bitcoin futures on the Chicago Mercantile Exchange rose to an all-time high last week at $ 934 million. This number has grown since the beginning of October and increased by 169% in the last month.
According to Arcane Research, the increase in the number of participants may be the main cause of the sharp increase in open interest. The CFTC reports that 102 top traders are currently holding positions (minimum volume 25 BTC), up 126% from the 2019 average.
Will the bitcoin price increase when more participants enter the market?
Increased participation in both spot trading and regulated Bitcoin products clearly affects Bitcoin’s current bullish trend and may change the perception of digital assets from both institutional and traditional retail investors.
As the volumes of regulated exchanges and derivative markets continue to grow, it is possible that an exchange-traded fund could finally be approved, and this would actually allow institutional investors to interact with bitcoin and other cryptocurrencies.