According to K33 Research, unlike in March, Bitcoin (BTC) is not showing any signs of enthusiasm indicating room for further price appreciation. report It was released on October 29th.
At the time of writing, BTC is trading at $73,500, about $300 away from a new all-time high.
Despite an impressive rally of more than 8% over the past week, Bitcoin trading volumes remain subdued. Daily trading volume averaged $2.6 billion, almost half the level in the first quarter of this year. TThe relatively quiet market activity suggests healthy, gradual buying rather than panic buying.
Additionally, Ethereum (ETH) has been a laggard, with the ETH/BTC trading pair reaching multi-year lows, reflecting the crypto space's focus shifting to Bitcoin.
Bitcoin's recent rally to all-time highs lacked typical euphoria, the report said. This shows that Bitcoin is a mature asset poised to maintain momentum amid favorable market conditions and the impact of the upcoming elections.
Increased demand from institutional investors
Current market conditions for futures contracts suggest a more balanced and less leveraged environment than in March and April, when speculative trading was rampant.
Bitcoin’s annualized funding rate currently averages 10.83%, significantly lower than its high of 32.17% in the first quarter. This suggests a more sober and cautious approach among investors.
CME futures also reflect this stability, with premiums still closer to the average funding rate than the wildly divergent numbers from the first quarter.
The report notes that exchange-traded fund (ETF) flows are showing strong interest from institutional investors, and this demand will continue, especially as individual investors have shown less urgency during the current rally. He added that this confirms expectations for a sharp rise.
Additionally, notional principal flows have recently averaged higher than their peak in the first quarter, reinforcing the institutional return thesis.
elections are coming
Consistent with other analysts' predictions, K33 Research predicts that the crypto market could benefit if former President Donald Trump wins the election.
With a favorable outlook and several campaign promises geared towards supporting a regulatory stance on digital assets, the report noted that a Trump victory could trigger a spike in the overall cryptocurrency market.
Conversely, Vice President Kamala Harris' victory could dampen this momentum, but it could also lead to less hostility toward the U.S. crypto industry. Therefore, Harris' terminology could remove some uncertainty from the market and favor Bitcoin and the crypto market.
Bitcoin market data
At the time of press October 29, 2024, 7:11 PM UTCBitcoin ranks first in market capitalization, and the price is above 5.67% Over the past 24 hours. Bitcoin market capitalization is $1.45 trillion The trading volume for 24 hours is $57.1 billion. Learn more about Bitcoin ›
Overview of the virtual currency market
At the time of press October 29, 2024, 7:11 PM UTCthe value of the entire cryptocurrency market is $2.46 trillion in 24 hour volume $113.42 billion. Bitcoin's dominant status is currently 58.94%. Learn more about the cryptocurrency market ›
