Bitcoin is facing a slow inflow of new investors, as short-term holders (STH) now make up only 30% of its realized capitalization—a significant decline from nearly 80% during the last bull market.
To reignite interest, substantial price moves or major headlines, like large-scale Bitcoin acquisitions by big companies, could be essential to draw attention back to the cryptocurrency.
New investors are trickling in at a snail's pace, with short-term holders (STH) making up just 30% of realized capitalization— a stark drop from nearly 80% in the last bull market.
To spark fresh interest and fuel growth, we need major price swings or headline-grabbing moves,… pic.twitter.com/3LfuNbvubS
— Kyledoops (@kyledoops) November 8, 2024
Sentiment indicators, however, reflect uncertainty. Bitcoin’s negative funding rate and high open interest suggest declining bullish sentiment, pointing to potential volatility.
The presence of significant short positions on exchanges such as OKX, Bybit, and Huobi raises the possibility of a short squeeze, which could trigger a sudden price movement.
A negative Bitcoin funding rate and high open interest indicate waning bullish sentiment and possible volatility.
Many shorts on exchanges like OKX, Bybit, and Huobi hint at a possible short squeeze.
Spot buying during corrections could trigger short covering, driving prices… pic.twitter.com/15kJxzom2i
— Kyledoops (@kyledoops) November 9, 2024
Following the recent U.S. presidential election, whale activity around Bitcoin spiked, with large transaction volume reaching $90 billion on Wednesday. This surge highlights a substantial uptick in transactions by large holders, signaling that major investors are repositioning in response to market developments.
Following the election, the volume of large Bitcoin transactions surged, hitting a peak of $90 billion on Wednesday—indicating a notable uptick in whale activity. pic.twitter.com/JgG4yHh3YX
— IntoTheBlock (@intotheblock) November 9, 2024
Bitcoin And Ethereum Spot ETFs Volatile Behaviour
Bitcoin and Ethereum spot ETFs also experienced a volatile week amid election outcomes and President Trump’s victory. Inflows and outflows fluctuated sharply between November 4 and November 8, indicating both opportunities and caution among investors. Bitcoin ETFs recorded the second-largest outflow on November 4 and the highest-ever inflow on November 7. Meanwhile, Ethereum ETFs saw the seventh-largest outflow on November 4, followed by the third- and fourth-largest inflows on November 7 and 8, respectively.
Institutional interest remains high, particularly from BlackRock (IBIT), which added 16,254 BTC (around $1.25 billion) this week, bringing its holdings to an impressive 449,967 BTC—now valued higher than its gold reserves at $34.4 billion.
🇺🇸 Spot ETF: 🟢$1.63B to $BTC and 🟢$154.6M to $ETH
🗓️ Week: 4 to 8 November 2024👉 The BTC and ETH ETFs have just experienced a volatile trading week, with several top inflows and outflows recorded amid the #USelection and President Trump’s win.
👉 Specifically, BTC ETFs… pic.twitter.com/5SKgs3PZ4j
— Spot On Chain (@spotonchain) November 9, 2024
With whale activity increasing and institutional players deepening their positions, Bitcoin’s market could be gearing up for a pivotal moment. The next steps will likely hinge on whether fresh retail interest joins the fray.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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