Last week marked Bitcoin’s strongest growth spurt of the year, with its price hitting a 2023 peak of $37,900. This surge was fueled by positive news about a Bitcoin ETF, which is essentially a fund that would make investing in Bitcoin as easy as buying stocks.
Alongside Bitcoin, the entire cryptocurrency market was buzzing with excitement, with altcoins, particularly Ethereum (ETH), soaring to new yearly highs of $2,100. It’s becoming clear that Bitcoin is following its expected cycle and gearing up for a bull run as the next halving event draws closer.
However, there’s growing consensus that global geopolitical tensions will play a more significant role in impacting Bitcoin’s price during halving. This situation leads to a decline in public trust in traditional economies, prompting people to seek alternative investment options like cryptocurrencies.
In terms of money flow:
- The total value locked (TVL) in top crypto chains is on the rise. Cronos, Solana, and Arbitrum, for instance, have seen notable increases in their TVL, suggesting investors are locking their assets in these chains.
- The circulation of stablecoins also tells us where money is moving in the crypto world. Chains like Arbitrum, Solana, and Optimism are seeing a significant uptick in stablecoin activity.
So, for investors looking to dip their toes in the crypto market, these four chains – Cronos, Arbitrum, Solana, and Optimism – are worth watching as the market shows signs of recovery.
Bitcoin Accumulation Trends: Data from Glassnode reveals that “whales” (big-time investors) are actively accumulating Bitcoin, positively influencing the digital asset market. Remarkably, not just the whales but also smaller investors (holding less than 10 BTC) are gathering Bitcoin, adding up to a record 191,600 BTC in the past 30 days.
Bitcoin ETFs Gaining Traction: There’s been a long-standing battle among major traditional financial firms to get a Bitcoin Spot ETF approved. However, the debate heated up in the summer of 2023, especially with BlackRock entering the fray. Previously, the U.S. Securities and Exchange Commission (SEC) had been rejecting ETF proposals, but recent legal losses against crypto firms and congressional pressure have raised hopes for an approved Bitcoin ETF, potentially unlocking more investment into the crypto market.
Investor Sentiment: According to Alternative, as of November 6th, the Bitcoin Fear and Greed Index hit a record 74 points – its highest in over a year. This suggests a growing optimism among investors, signaling a potential end to the bear market.
Many suggest selling assets when the market is overly enthusiastic, but in this case, the market is still far from an uptrend. The current sentiment is simply optimistic about an end to the bear trend.
However, the prospects of a new bull market in digital assets don’t seem too far off.