The recent increase in volatility of Bitcoin and the growth in the volume of crypto derivatives are accompanied by a notable increase in price volatility.

At the moment, BTC registers an increase of 6.8%, settling at $62,992, after peaking near $64,000 on Wednesday. Let’s see all the details below.

Price Movements: Bitcoin Crypto Approaches $64,000

As anticipated, the Bitcoin ‘bull’ returns, bringing with it a significant increase of price volatility. At the moment, BTC is up 6.8% to 62,992 dollars, after having reached a high near 64,000 dollars.

This week alone, the price recorded a 21% gain. The CoinDesk 20 Index, which serves as a broader market indicator, showed a 7.5% increase to $2,326.

Bitcoin’s 30-day realized volatility, measured as the standard deviation of the daily percentage change in price over the past 30 days, rose to 46% on a yearly basis, up from 30% a week ago.

In the cryptocurrency derivatives market, activity is growing, with record trading of 374 billion dollars in futures contracts, perpetual futures and options in the last 24 hours, according to Switzerland-based platform Laevitas.

This figure represents the highest number of trades in a single day since November 2021. The increase in demand for leveraged products indicates an increase in risk appetite, with the potential for price instability caused by sudden liquidations.

Bitcoin Miners for Sale: Declining Stocks Amid Market Growth

Bitcoin miners are selling more coins, reducing supplies in a rising market.

Glassnode data indicates a decrease of 8,426 BTC ($530 million) held in miner-related wallets since the start of the year, bringing the total to 1,812,482 BTC.

This decline began in the second half of October, when miners held more 1.83 million BTC.

Analysts at FRNT Financial attribute this trend to the impending halving of miners’ compensation and ongoing dry weather conditions in China, which have catalyzed the selling.

Morgan Stanley is currently considering offering spot Bitcoin ETFs to clients of its large brokerage platform.

The US Securities and Exchange Commission recently approved 11 spot bitcoin ETFs, and since then, billions of dollars have flowed into these products.

However, the opening of the liquidity floodgates will come when registered investment advisor (RIA) networks and broker-dealer platforms such as Merrill Lynch, Morgan Stanley and Wells Fargo begin offering these ETFs.

Morgan Stanley, a pioneer in the alternative investment and private markets industries, manages more than $150 billion in assets and was the first major U.S. bank to offer access to bitcoin funds to its wealthy clients in 2021.

Bitcoin ETF: volume record with BlackRock in the lead

Bitcoin ETFs once again set volume records, reaching the reported figure of 7.6 billion dollars, with BlackRock in the leadership position.

Grayscale’s GBTC and Fidelity’s FBTC are among the next in line, with volumes of $1.8 billion and $1.4 billion, respectively.

The entire Bitcoin ETF space has officially surpassed the previous high of $4.6 billion, marked on launch day.

Eric Balchunas, senior ETF analyst at Bloomberg, highlighted that this officially marks the craze for Bitcoin ETFs. Noting in particular that IBIT traded more volume in the first two weeks than any other period.

Balchunas pointed out that the majority of the volume came from organic demand, indicating that no algorithms were used and the demand was mostly natural.

However, he also stressed that major platforms that have not yet included Bitcoin ETFs in their offering will need to pick up the pace.

Considering BTC’s current ATH of $69,000, the community expects Bitcoin to surpass that value, likely during l’halving di Bitcoin expected in April 2024, if not sooner, given the anticipated increase in volatility due to the BTC price rise.

The Bitcoin halving, scheduled for April 19, 2024, is expected to impact prices by destabilizing value with a reduced supply of tokens.

The previous halving was associated with the price reaching $69,000, and it is expected that the inflation rate and long-term approach can continue to support the value of Bitcoin.


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