While the Bitcoin betting business is evidence of a lively bustle on the digital trading floor, the bulls are not giving up the reins and are slowly but surely driving the Bitcoin price towards an all-time high. The market update.
With a 24-hour plus of 3.1 per cent, the Bitcoin price seamlessly continues the rapid rally of the last few days. In the early hours of the morning, it did indeed fall below the 19,000 US dollar mark once again. Since then, however, the crypto-currency has risen again, climbing to 19,044 US dollars at the time of going to press. In a 30-day comparison, the value of Bitcoin has thus risen by over 46 per cent.
Formally, the Bitcoin course is still a few metres away from its all-time high. Unofficially, however, the digital currency has already reached its interim goal. With a current market capitalisation of 350 billion US dollars, the total value of all Bitcoin already exceeds the peak value from ATH times by 30 billion US dollars. The fact that the BitQT exchange rate still lags a little behind the record high is solely due to the increased supply since then. Almost two million more Bitcoin have been in circulation since then.
Run on Bitcoin Futures
If the Bitcoin price goes up, forward transactions will also pick up again. After all, a high degree of fluctuation is not only associated with the risk of losses, but also with high chances of profit. The Bitcoin exchange Binance in particular is currently suffering from this. At over 1.2 billion US dollars, open interest, i.e. the potential trading volume of all outstanding futures contracts, reached a new all-time high on 24 November.
According to Datamish, traders have placed some 23,100 long contracts versus 10,300 short contracts. The majority of investors are not expecting the rally to end and are betting on a rising Bitcoin price.
Zigzagging uphill
Due to the price explosion, almost the entire BTC supply generates profit. Around 99.25 percent of the total volume in circulation is clearly in the black. For the majority of investors, a Bitcoin investment has thus already paid off significantly.
It is not surprising that investors are paying off their Bitcoin and securing returns, given the rapid price rally. Profit-taking will always push Bitcoin down and is also conducive to healthy market growth. In the last few weeks the market has finally heated up considerably. Consolidation phases are therefore necessary to cool down the market and the FOMO-driven mindset and make room for newcomers or repeat buyers. The setbacks are therefore creating growth potential and Bitcoin is likely to hold on to its course and zigzag northwards.