Bitcoin’s new all-time high this month has led to some interesting developments in the crypto space. The success of the first Bitcoin ETF contributed greatly to the fact that the price of BTC eventually exploded through the $ 67K price point and with it the funding rate in the market increased. The ProShares ETF saw প্রথম 1 billion in trading volume on its first day, indicating an increase in market flow.
The fund rate increased in October with the price movement of BTC. This spike keeps pace with the BTC movement. However, since the price of Bitcoin has started a downward trend, the fund rate has also peaked at the mid-October level.
Bitcoin open interest spikes
Open interest in Bitcoin recorded a significant spike when the value of digital assets exceeded $ 67K. BTC-head open interest rose sharply to 15,000 tunes forever as the property reached its new all-time high in October. BTC-head perpetual spikes have risen to past all-time highs recorded in April.
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Increased interest from big money is credited to the fund rate spike recorded last week. More specifically short-term traders expected the value of digital assets to continue to rise and exceed $ 70K. Funding rates have shown similar movements in the futures market in recent times.
Funding rates for BTC spikes in October | Source: Arcane Research
Arken Research pointed out that this rise in open interest rates and increased rates of funding could point to an all-time high leveraged long-term trade. If so, we need to keep an eye on whether digital assets will continue to depreciate in the future.
Big money moving into the market
Institutional flows have also seen record volume after last week’s all-time high breakout. A CoinShares report shows that Bitcoin saw flows up to $ 1.45 billion last week alone. Much of this volume comes from trading at the ProShares ETF, which debuted on Tuesday last week. An additional $ 138 million flowed BTC products to other regions.
BTC price falls below $59,000 | Source: BTCUSD on TradingView.com
Wall Street sentiment has begun to move in favor of the top cryptocurrency in the market. The data shows that the number of Wall Street brokers interested in BTC and the market has increased from 5% at the beginning of the year to 15% now who say they have started investing in BTC more seriously.
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The overall market sentiment has remained positive with the all-time highest run of the previous week. However, falling prices while trading in cryptocurrencies have led investors to take a more cautious path. The price of Bitcoin touched $ 58K in early Wednesday before the market opened for mid-week trading.
Featured image from iStock, charts from Arcane Research and TradingView.com