Bitcoin’s price reached an all-time high on November 7, surpassing $76,800 as investors boosted their allocations to the cryptocurrency amid robust spot Bitcoin ETF inflows and a red wave across the US government.
Institutional investors, including those in the CME, are positioning themselves for further upside, with open interest reaching a record high of $13.2 billion on November 6. The rise in open interest is attributed to increased confidence in the market following the election of pro-crypto legislators and the expectation that benchmark interest rates will continue to drop.
The US Federal Reserve’s decision to cut interest rates by 25 basis points on November 7 has also boosted investor confidence, with some analysts predicting a Strategic Bitcoin Reserve. This, combined with the anticipation of further rate cuts, is leading investors to increase their allocations to equities and crypto assets.
According to HighStrike’s head of crypto options and derivatives, JJ, the increased activity in CME Bitcoin futures and options markets is driven by “ceaseless demand from Coinbase spot.” Investors are also attracted to the lower volatility levels, with implied volatility settling at 50%, making buying longer-dated call options more attractive.
Traders expect a rally to the $78,000 to $85,000 range, with aggregate order book structure showing a block of asks in the $77,000 to $78,000 range. The Fibonacci extension tool projects the rally to extend to $82,367, which lines up with the 1.618 level.
Note: This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Source: https://cointelegraph.com/news/bitcoin-all-time-high-at-76-8-k-is-just-the-beginning-according-to-data