Bitcoin (BTC) Signals Bullish Moods in November
Bitcoin (BTC) price action stalled relative to the more volatile altcoins, but the leading asset remains the most liquid and best-traded digital coin. After significant appreciation in October and recovery from under $30,000, BTC is once again showing a collection of factors to boost the market price, which hovers just a short hike from new all-time highs.
BTC reached $62,454.68 after a brief hike above $63,500. The leading asset took a step back, while the entire market remained mostly positive, with smaller assets reaching new all-time high valuations.
Funds Flow into Altcoins
The relative stability of BTC above $61,000 is the chief booster behind the performance of altcoins. Solana (SON) benefited from the demand for more rapid price growth. SOL peaked at $247.47 and has continued above $240 with expectations of a new price discovery phase.
In the meantime, Decentraland (MANA) remained highly active, trading above $2.82. Axie Infinity (AXS) is above $147.79, and The Sandbox (SAND) regained the $3 level.
Overall, the BTC market cap influence has diminished relative to other assets, sinking to 42.9%. The Ethereum (ETH) market cap dominance increased to 19.3%, while the collection of smaller altcoins is at 19.58%.
Bitcoin Mining Points to Increased Confidence
The Bitcoin hashrate is close to 160 EH/s, a short distance from its September peak above 180 EH/s. Mining has almost recovered from China’s ban on Sichuan ASIC farms, with more new miners coming online.
The Foundry.USA mining pool is now lining up as the third largest mining facility, taking in nearly 12% of blocks. F2Pool has increased its influence, and there is a significant part of mining that belongs to a “shadow”, so far unidentified hashing power.
The latest difficulty adjustment reflected the growing mining activity.
Will BTC Markets Return to Leverage
The latest recovery from September’s lows happened based on the spot market and real-time buying of BTC coins. Exchange net positions are still showing a marked withdrawal of coins and a trend to store BTC in cold storage for the long term.
However, for a full-fledged bull market, there are some expectations leveraged trading may return as the leading price factor. Data is showing a slow, tentative switch to leveraged activity, still barely reflected in funding rates.
Leveraged BTC trading may build bigger price swings and amplify price swings.
ETF News Still Boosting the Market
After the initial euphoria of the Valkyrie Bitcoin Strategy ETF and the ProShares ETF at the end of October, the market will have to absorb the news of additional funds being approved and ready for launch.
The Grayscale Capital ETF is in the process of switching from its current status as an OTC-traded Bitcoin-based fund and into a new type of investment vehicle. The approval may still be months away, expected toward the end of the year.
At this point, there may be as much as 40 various ETFs waiting for approval, with a bid to change the mainstream acceptance of BTC in the coming months.
The Grayscale conversion will immediately bring in more than 40M assets under management in the current BTC fund. GBTC shares are also trailing the market prices, trading at an equivalent of $58,000 per BTC. A switch to an ETF model may boost mainstream investment and change the price ratio.
What is the BTC Target for November
Some of the price predictions for BTC see the asset as repeating its 2013 price move, to vault above the $100,000 range.
In the short term, there are expectations for a hike to the recent all-time high around $67,000.
Over the coming weeks, predictions see BTC hiking to $85,000 and into price discovery territory. The current trading mood is well within “greed” range with 73 points based on the Crypto Fear and Greed Index, though with the potential for a move to “extreme greed” soon.
Tether (USDT) Injected $2B in Market
In the past month, the BTC rise coincided with several jumps in the supply of Tether (USDT), the most influential stablecoin. Over the past four weeks, USDT expanded to a total of 71.45B tokens available, up from around 68B at the start of the period.
Each USDT moves on average 1.2 times through the crypto ecosystem, with most flowing into BTC.
BTC remains highly risky and volatile, crashing to $62,000 within minutes on Thursday. Over the course of 4 hours, most leading exchanges saw a predominance of long liquidations. Despite the overall bullish mood, the exact price moves of BTC remain unpredictable and leveraged positions are always threatened.
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