Ether Price Hits New ATH After Breaking its Dry Spell with Inflows, Bitcoin Implied Volatility Trends Down
Last week was a subdued one when it comes to the digital asset investment products after the record $1.5 billion inflows the week prior, following the US SEC permitting a Bitcoin futures ETF decision.
With only $288 million inflows in the week ending October 29, the total year-to-date inflows have risen to a record $8.7 billion, already 30% higher than 2020, according to CoinShares’ weekly report.
Bitcoin, yet again, saw the majority of inflows totaling $269 million last week, which brings its total inflows for October to $2 billion.
During this month, the price of Bitcoin surged 40% to as high as $67,000. As of writing, Bitcoin has been trading above $63,000.
Price is seeing some action this week after the lack of it last week, which resulted in the funding rates falling. The funding rate has even drifted negative for a smaller period though it remains positive overall.
But “market sentiment is still very much a bull-dominated one,” noted Delphi Digital. This means, in the current environment, bulls are buying every dip, which implies a higher degree of long leverage, so another “long squeeze” can’t be ruled out.
October also saw a 24% increase in total adjusted on-chain volume to $856.
Much like volume and price, open interest climbed with CME rising by 149% to $4.26 bln while the daily average volume jumped by over 114% to $3.9 billion. On the options front, BTC’s monthly options volume increased by 52.3% to $30 billion.
Bitcoin’s volatility is actually going down, which measured over a 260-day period during the recent ATH dropped to around 66, a level not seen since May when the price dipped under $40k.
According to the DVOL index, which measures the approximate implied volatility for a market over the next 30 days, the leading crypto asset’s latest rallies have not been met with much action in implied volatility.
High implied volatility points to the market pricing in more price uncertainty, while low implied volatility indicates less uncertainty. Implied volatility tends to spike during market sell-offs and trends lower when BTC steadily trends higher.
“We haven’t seen an extreme swing upwards on implied volatility, which tells us that the general market is comfortable with what BTC is doing,” said Delphi Digital, noting if BTC rallies back above $67k and implied volatility starts to surge, “it could be an indication that another short-term pullback is imminent.”
Coming to the altcoins, the largest one, Ethereum (ETH), which hit a new all-time high today at $4,480, finally broke its three-week dry spell with inflows of $17 million, which has its 2021 inflows now coming at $1 billion. As a result of Ether’s outperformance, its market share rose back to 32%.
Other altcoins like Solana (SOL), Polkadot (DOT), and Cardano (ADA) also recorded inflows of $15 mln, $6.2 mln, and $5 mln respectively. SOL 1.88% Solana / USD SOLUSD $ 51.74
$0.971.88% Volume 1.88 b Change $0.97 Open $51.74 Circulating 339.14 m Market Cap 17.55 b 4 mon Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 4 mon Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum 4 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows DOT 2.09% Polkadot / USD DOTUSD $ 9.93
$0.212.09% Volume 774.33 m Change $0.21 Open $9.93 Circulating 987.58 m Market Cap 9.81 b 4 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 5 mon SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 5 mon Solana Unaffected by Price Jitters while Bitcoin, Ether, Polkadot, and Cardano Post Outflows ADA 1.80% Cardano / USD ADAUSD $ 0.53
$0.011.80% Volume 845.67 m Change $0.01 Open $0.53 Circulating 33.75 b Market Cap 17.86 b 4 mon Bitcoin Is Back Above $51k and Ether $4,100 as The Cryptocurrency Market Goes Green 4 mon Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 5 mon Solana (SOL) Bucks the Trend, Along With Tron (TRX), by Recording Highest Inflows After Bitcoin (BTC): Report
Multi-asset investment products, however, saw outflows for the third time of a record $23 mln. “We believe investors are currently preferring single-line exposure and are becoming more discerning over their altcoin exposure,” said James Butterfill, investment strategist at CoinShares.