Bitcoin Price Hits Record High as ETF Trends Drive Positive Sentiment
Bitcoin’s price surged to an all-time high of $64,350.91 amid positive trends in the exchange-traded fund (ETF) market. The digital currency has been on a bullish trajectory, with other major tokens also experiencing gains. Ether, the second-largest cryptocurrency, added 0.4% to reach $2,624.48, while the overall digital asset market, as measured by the CoinDesk 20 Index, rose nearly 1.2%.
In contrast, traditional markets saw mixed performance, with the S&P 500 index falling by 0.19% and gold reaching a record high of $2,678.25. However, Asian stocks surged as China’s central bank announced a stimulus injection of $142 billion to support the economy.
Bitcoin ETF inflows surpassed $100 million for the second consecutive day, extending a five-day winning streak. This surge in ETF activity has shifted the net holdings indicator to positive territory for the first time this month, indicating a trend of accumulation rather than sales. Ether ETFs also saw inflows of $43.2 million, despite remaining over $500 million in the red since their listing in July.
Ethereum’s layer 2 protocol, Celo, is challenging Tron’s position as the blockchain with the most daily active addresses using stablecoins. The seven-day moving average of active addresses on Celo has nearly matched Tron’s tally, following Tether’s decision to deploy its US dollar-pegged stablecoin, USDT, on the platform. This move has led to over $200 million worth of USDT being issued on Celo, driving investor interest in the CELO token.
Meanwhile, Ethereum founder Vitalik Buterin praised Celo’s progress, further fueling interest in the platform. The CELO token saw a nearly 20% gain on a 24-hour basis, trading at 63 cents. This growth underscores the increasing adoption of stablecoins and layer 2 solutions within the cryptocurrency ecosystem.
Chart of the Day: Bitcoin Options Implied Volatility
The chart displays the implied volatility for bitcoin options at the $100,000 strike expiring on Nov. 8, as well as subsequent monthly and quarterly expiries. Options expiring on Nov. 8 are priced higher compared to later dates, indicating traders’ anticipation of significant market movement around the U.S. election results.
With the U.S. elections scheduled for Nov. 4 and results expected on Nov. 8, the options market reflects heightened volatility expectations during this period. Traders are closely monitoring market dynamics and potential outcomes that could impact the cryptocurrency landscape.
Conclusion
The surge in Bitcoin’s price to $64,350.91 reflects growing investor confidence in the digital asset amid positive ETF trends. As the cryptocurrency market continues to evolve, the rise of stablecoins and layer 2 solutions like Celo highlights the industry’s innovation and adaptability. With the upcoming U.S. elections set to impact market dynamics, traders are preparing for potential volatility in the options market. Overall, the cryptocurrency ecosystem remains dynamic and resilient, poised for further growth and development in the coming months.
