- Bitcoin broke the $27,000 barrier on Sunday.
- The price crack also boosted demand in the derivatives market.
Bitcoin [BTC] rose above $27,000 in the past 24 hours as market participants brace for a continued uptrend.
Read Bitcoin’s [BTC] Price forecast 2023-24
The king coin continued to move north until it hit strong resistance at $27,900, data from CoinMarketCap showed. At the time of writing, BTC was exchanging hands at $27,724, but hopes that the coin would turn bullish in the wake of recent legal victories remained high.
Whales collect Bitcoin
Now that the SEC has decided against an appeal in the closely watched case against digital asset manager Grayscale Investments, expectations that a Bitcoin spot ETF will become a reality have become higher than ever. This probably also played a role in the minds of whale investors.
According to a recent post from on-chain sleuth Ali Martinez, the user cohort with 100-1,000 coins in their wallets has accumulated around 117 BTCs since the aforementioned development. At market rates, the newly added supply was $3.24 million.
#Bitcoin whales bought about 117 $BTC in the last 48 hours, worth approximately $3.2 million. pic.twitter.com/Aoshmy0r4D
— Ali (@ali_charts) October 15, 2023
A commonly observed phenomenon in the financial markets is that smart money investors use the consolidation phase of a fundamentally strong asset to expand their existing stock.
Spot ETFs, which could potentially spur greater capital injection into Bitcoin and the broader market, were seen as the next big thing.
Elements of doubt
However, despite the positive developments, concerns remained about Bitcoin’s next moves. In a separate post, Ali Martinez highlighted that long-term holders (LTH) of the king coin were doubtful about a BTC price correction in the short term, according to the NUPL reading.
note that NUPL (Net Unrealized Profit/Loss) specifically looks at the difference between yourealized profit And yourealized loss. This is done to determine whether the network as a whole is currently in a state of profit or loss.
#Bitcoin long-term holders are showing ‘fear’ amid concerns over a significant portion of stocks $BTC price correction! pic.twitter.com/7Zqkygibqd
— Ali (@ali_charts) October 15, 2023
Is your portfolio green? Check out the BTC profit calculator
Speculative interest rates jump
Bitcoin’s price tear also boosted demand in the derivatives market. Open interest (OI) in Bitcoin Futures contracts rose 5% in the past 24 hours to $11.67 billion, according to Coinglass. In fact, a continued increase has been seen since the SEC versus Grayscale development last Friday.
Source: Coinglass
Furthermore, the number of longs continued to exceed the number of shorts, as reflected in the Longs/Shorts ratio. This implied that more traders were hoping for a northward move of Bitcoin in the short term.
Source: Coinglass