Bitcoin prices have broken the $67,000 mark for the first time in over two months, causing another wave of volatility in the digital asset sector, with Bitcoin quickly astonishing traders once again.
Chris Newhouse, Head of Research at Cumberland Labs, stated: "A combination of factors ranging from market to political has led to a powerful mix of short squeezes, speculative positions, and new capital inflows, propelling Bitcoin to a new high not seen since last July."
On Tuesday, the largest cryptocurrency, Bitcoin, rose by 3% to $67,878, before fluctuating in the New York market.
Fadi Aboualfa, Head of Research at Copper Technologies Ltd., a cryptocurrency custody firm, said: "Overall, the market has been moving sideways since cryptocurrencies reached their all-time highs in March."
Aboualfa mentioned that the industry's so-called "Fear and Greed Index," which tracks the accumulation and sentiment of Bitcoin traders, listed 2024 as the greediest year in Bitcoin's history, "so it's normal to expect some cooling off for Bitcoin."
Data compiled by Bloomberg showed that as of last Thursday, Bitcoin experienced a low volatility of less than 5% for 34 consecutive trading days, marking the longest period of calm in a year. The subdued price movement has disappointed many in the cryptocurrency community, as the asset class has historically performed well in October, earning the nickname "Uptober."
According to data from ETC Group, the open interest in Bitcoin futures and perpetual options contracts increased significantly last week, adding about 33,000 Bitcoins ($2.1 billion). The company said in a report on Tuesday that the futures open interest, calculated in US dollars, reached an all-time high.
Vetle Lunde, Head of Research at K33 Research, said: "What we are seeing now is very close to the price movement and market structure of a year ago, when CME activity accelerated in mid-October."
Lunde stated that the futures premium on CME has risen to a five-month high, indicating a huge institutional demand for increasing exposure to cryptocurrencies.
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