With records being erased as if they were nonexistent, the cryptocurrency market simply kicked down the door and made itself known. The seven-day moving average of spot trading volume on major platforms surpassed $24 billion on October 26th.
Since the end of March, Tremendous swings returned, something we haven’t seen, as traders rushed to respond to reports of a possible spot Bitcoin ETF.
The Market Reacts as Bitcoin Rises
With Bitcoin leading the charge and rapidly approaching the $35,000 mark, the cryptocurrency rally has been nothing short of spectacular. The beast appears to have awakened and is ravenous.
The volume of daily exchanges is reaching unprecedented heights since the spring blooms.
But the cryptocurrency market as a whole has caught the fever, so this isn’t just a Bitcoin show. According to report, the market capitalization increased from $1.184 trillion to an astounding $1.312 trillion between October 22 and October 25.
Being the enormous force that it is, Bitcoin grabbed all the attention and saw a sharp increase in its market share, from 49.58% to 51.47%. Trading volumes are honest. They tell you up front that interest is returning, and it’s returning with a bang.
Individuals are trading as if there’s no tomorrow, bringing volatility and liquidity back to the market. Finally, the whales, they are dancing wildly. With million-dollar transactions to and from exchanges, Whale Alerts, the on-chain tracker, has been experiencing an exponential increase in activity.
Let’s not, however, get ahead of ourselves. Bitcoin is currently waiting it out at about $34,150 after hitting a resistance level at $35,000.
The air is heavy with anticipation, even though the bulls may have taken a break. Is it possible for them to surpass the alluring $35,000 threshold for Bitcoin in the upcoming week?
Institutional FOMO Kicks In
The cryptocurrency market is more than just a place for whales and lone traders to play. The institutional investors, the big boys, are beginning to experience FOMO.
It’s about damn time that institutional investors start pouring money into Bitcoin ETFs and other investment vehicles. The picture that data is giving is fairly clear: everyone wants a piece of the action as ETF weekly inflows are getting close to record levels.
In just one week, trading volumes for the ProShares Bitcoin Strategy ETF (BITO) and the Grayscale Bitcoin Trust (GBTC) reached $1.7 billion and $800 million, respectively, putting them in the spotlight.
And let’s be clear, these aren’t even the most desired methods of crypto exposure. Simply put, people are so eager to follow the trend. Not only is the cryptocurrency market growing, but it’s practically blowing up.
William Clemente of the crypto research company Reflexivity is aware of what is going on. He has accurately predicted that ETF trading will return, and it will return with a vengeance.
Here’s the lowdown: the cryptocurrency market is sending a message in addition to shattering records. A message that is clear, loud, and unavoidable—one that is present and not going away.
You can bet that this party is just getting started because institutional investors are beginning to swoop in like sharks. Greetings from the new crypto era.
