The total market capitalization of cryptocurrency hit a new all-time high of around $2.76 trillion last Thursday. Then the market took a dip; the euphoria about new all-time highs (ATH)’s may have caused the market to overheat slightly. In particular, the launch of the first bitcoin futures ETF in the US ensured that funding rates rose a little too quickly.
However, this also led to a huge increase in the open interest for CME futures, reports research firm Glassnode. This week the market seems to be getting off to a nice start in green and several prices are already rising significantly.
#Bitcoin open interest in CME futures contracts has increased by $3.95B over the course of October
This is in part driven by the introduction of the $ BITO ETF product
This represents a 265% growth in open interest since the end of September.
Live Chart: https://t.co/mZc2GLCcnK pic.twitter.com/kUEkfbMbf3
— glassnode (@glassnode) October 24, 2021
Bitcoin
Bitcoin (BTC) showed a small pullback after last week’s new ATH. Bitcoin touched a new all-time high of $67,275 on Wednesday, but then corrected significantly lower. Yesterday, bitcoin fell below $60,000 three times in a row and briefly reached $59,650.
Despite this, the support held up pretty well around $60,000 and the price started a recovery after the third dip. Bitcoin jumped to $61,000 last night, jumped to $62,000 a few hours later and again to $63,500 this morning. At the time of writing, bitcoin is slipping back slightly to $63,000, but if this pattern continues, we may see another jump to $6,4000 in the next few hours and perhaps to the ATH this week.
It is always possible that bitcoin will correct further, but as long as the price does not fall below the range around $58,000, bitcoin will still be in an uptrend.
#Bitcoin Risk Level
Oct. 24, 2021The aggregate risk measures whether or no the market is overheated. Blue is low risk, red is high risk.
Risk at 47%… this is not what a top looks like. ???? pic.twitter.com/aEFAEiDoDI
— ecoinometrics (@ecoinometrics) October 24, 2021
Altcoins
Ethereum (ETH) is also recovering slightly, but less strongly than bitcoin. Ether price therefore corrected less hard last weekend. Ether initially fell to $3,975 last night, and then, like bitcoin, made three significant jumps. Ether just touched $4,200, but can the price hold on to this and immediately rise?
Solana (SOL) is rising remarkably fast again. SOL came very close to its September ATH of $213 last Friday at $210. In the end, SOL still hovered below the ATH and then corrected downward. The price came in at $186 yesterday but then started to rise sharply and is back at $210 this morning. There seems to be a good chance that we will see another ATH for solana today or this week.
Dogecoin (DOGE) started rising too much yesterday afternoon and it continued into the evening. Shiba Inu (SHIB) rose even faster before that and broke his ATH. That volume eventually skipped and that may have had to do with Elon Musk and Twitter again. More on that later on Crypto Insiders.
In addition, we see fantom (FTM) 7.5% in the plus, olympus (OHM), near and safemoon 8 to 9%, kucoin (KCS) 10%, graph (GRT) and curve (CRV) 11% and thorchain ( rune) is again the hardest riser on the market and is up 14%.
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