Journalist
Posted:
- Speculation surrounding ETFs influencing the price of BTC continued to increase.
- Traders remained bearish; prices did not show much movement.
Bitcoin [BTC] saw a huge price increase in recent months. One of the main reasons for the price increase was the interest of major institutions in Bitcoin ETFs.
High expectations
Glassnode found that many people are interested in Bitcoin ETFs and expect $70.5 billion in investments. October was all about waiting for rules on this, which made major investors more interested.
Bitcoin led the positive trend, rising 28% in a month and 108% in the year. Other cryptos, such as Solana, also performed well and showed an overall market improvement.
If the Spot Bitcoin ETF is approved, professional investors can invest a lot.
Bitcoin’s investment style and reduced supply could be similar to what happened with gold ETFs. We look at this by checking where the money comes in and how much Bitcoin is actually available.
Long term versus short term
Glassnode sorts Bitcoin holders into Long Term Holders (LTHs) and Short Term Holders (STHs) based on how long they keep it.
LTHs hold for more than 155 days, usually buying when business is bad and selling when the market is strong. STHs have a shorter shelf life and are more responsive to short-term market changes.
This helps analyze the market, plan trades and manage risk, providing insight into different investor groups and stages of the market cycle.
Source: Glassnode
Traders are turning bearish
Looking at the condition of the traders, it was seen that 108,000 Bitcoin options are about to expire. The end of these options marked a decision point for traders. With a Put Call Ratio of 0.83, more people bet on a price drop.
The maximum pain point at $33,000 means that many traders could lose money if the price stays around that level.
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The total value of these options is as much as $4.04 billion, indicating a significant impact on the market depending on how these options develop.
Nov 24 Option details
108k BTC options expire with a Put Call Ratio of 0.83, a maximum pain point of $33,000 and a notional value of $4.04 billion.
1.2 million ETH options expire with a Put Call Ratio of 0.71, a max pain of $1,700 and a notional value of $2.47… pic.twitter.com/fhrOpr6bnE— [email protected] (@BTC__options) November 23, 2023
At the time of writing, BTC was trading at $37,409.08 and had risen 0.3%. Only time will tell whether BTC will continue to grow.