The world’s largest cryptocurrency, Bitcoin is increasing steadily during November and analysts say the future remains bright for dominant cryptocurrency.
BTC price currently stands at $16,000 and its price has boosted by 23% month to date, and increased after the completion of the United States Presidential election. Significantly, the dominant cryptocurrency spot volume has surpassed all earlier records in 2020, as the demand for acquiring Bitcoin is increasing.
If we company its price to the previous month’s price, the largest cryptocurrency’s spot volume gained by more than 270%.
Arcane research announced that the daily volume on November 5 was the highest since the Black Thursday crash that drew Bitcoin price under $4,000 on March 13.
Furthermore, market sentiment is also touching record numbers, and this is shown in the Crypto Fear & Greed Index, which currently stands at 86, a representation of extreme greed in the market.
Besides, many experienced investors counter-trade the signal coming from the index, as extreme greed is reflective of FOMO or euphoric sentiment in the market and a sign to make gains.
Moreover, as Bitcoin’s spot volume is hitting 2020 highs, institutional interest has also been dominant during November, with traders with high-new-worth and multiple high-profile companies investing BTC.
Bitcoin future at CME also gained to near lifetime highs
Remarkably, open interest for BTC future at CME also boosted to near lifetime highs last week and settled at $934 million. Additionally, the figure has been increasing since the start of October and gained by 169% in the previous month.
If we believe Arcane Research, the rise in the number of participants may be the major reason for the steep gain in open interest. According to reports from the commodity Futures Trading Commission, there are 102 large traders holding positions. Significantly, their minimum size is 25 Bitcoin, and this is 126% raise fro the average figures witnessed during 2019.
Furthermore, rising participation in both spot trading and regulated BTC products is affecting dominant cryptocurrency’s current bullish trend and likely altering how institutional and traditional retail investors see the digital asset.
Another essential thing to mention is that as volumes at top-tier exchanges and regulated derivatives markets continue to expand, a Bitcoin exchange-traded fund may eventually be confirmed. Remarkably, this would open the doors for institutional investors to join with Bitcoin as well as other crypto assets.