In a significant development, Bitcoin’s price has surged to a notable $35,000 for the first time in 2023, marking a 19% increase over the past week. Spot trading volume has seen a staggering 187% increase, now reaching $50 billion, highlighting the bullish momentum. Additionally, the market cap has grown by 13%, currently valued at $666.5 billion. As the market displays signs of FOMO, institutional investors are capitalizing on this rally, driven by optimism surrounding a potential spot BTC ETF in the US.
According to the analytics platform, Santiment, traders are currently exhibiting signs of Fear of Missing Out (FOMO) and a pronounced level of greed keywords. However, for sustained growth, a sense of Fear, Uncertainty, and Doubt (FUD) is essential, as historically, markets rise when least anticipated.
🤑 Traders are euphoric and showing major signs of #FOMO. $BTC's now +19% 1-week rise, and surging market caps have registered a high level of greed keywords. For more rising, trader #FUD is necessary. Markets historically rise when traders least suspect. https://t.co/Ojpa7qy8a9 pic.twitter.com/eWLUbOqL59
— Santiment (@santimentfeed) October 24, 2023
Institutional investors are at the forefront of this rally. Their active participation is largely due to the optimism surrounding the potential approval of a spot BTC Exchange Traded Fund (ETF) in the US. This enthusiasm was particularly evident during the Asian trading hours on Tuesday, spurred by the revelation of a BlackRock ETF on the Depository Trust & Clearing Corp. (DTCC) website.
Additionally, the Bitcoin futures open interest on the Chicago Mercantile Exchange (CME) has hit a milestone of 100k BTC, as tweeted by analyst Vetle Lunde. This indicates a significant interest from institutional investors, leading to a 25% boost in CME’s market share, which might soon overtake Binance’s perpetual market.
CME BTC futures OI has breached 100k BTC for the first time ever.
— Vetle Lunde (@VetleLunde) October 24, 2023
While offshore perp OI shrank by 26,735 BTC yesterday, CME's OI grew by 4,380 BTC. pic.twitter.com/kjKBRYCoSX
Technically, Bitcoin’s break above an ascending triangle pattern hints at a potential rise to $45,711. However, with the Relative Strength Index (RSI) at 78.55, traders should be wary of an overbought scenario that might prompt a short-term correction. The upper Bollinger Band suggests a resistance level at 31937, while the lower band offers a support level at 28262.
The Bitcoin market’s bullish trajectory is evident, but traders should be cautious of potential short-term setbacks. The active role of institutional investors and the buzz around a spot BTC ETF are pivotal to this trend and deserve keen observation in the upcoming days.
