according to analysts bitfinexas shown in Bitfinex Alpha Report of the WeekThis increase in new market participants indicates that we may be in the early stages of a bitcoin bull run.
BTC derivatives volume is starting to have a bigger impact Bitcoin Prices, along with derivatives trading, are moving at a faster rate than spot trading volumes, which in turn is increasing volatility. Options volumes are also increasing, indicating that institutional investors are increasingly participating in the market.
Bitcoin Spot, Derivatives and Options Trading Volume
Weekly bitcoin spot trading volume hit an all-time high last week, according to analysts at Bitfinex, as the 7-day moving average of bitcoin trading volume on the exchange rose to nearly $24 billion.
Bitcoin futures trading volume across various exchanges in the derivatives market approached $1 trillion, while bitcoin options open interest rose to $12.14 billion. This suggests that institutional investors are increasingly participating in the market which indicates that we may be in the early stages of a bull run.
According to analysts, even though increased activity may seem enticing to investors, it is usually followed by increased volatility.
The analysts also noted that:
“BTC long-term holder (LTH) spend output profit ratio (SOPR) is now returning to the multiple level on multiple timeframes, indicating that the coins are being taken in profits. The selling behavior of long-term bitcoin holders is in line with previous bear trends, which is a positive sign for the market.
he adds:
“Comparing the supply held by long-term holders (LTH) with the active supply from a year or so ago, it is clear that the former has been declining while the latter has been steadily increasing. As a result, bitcoin’s liquid Supply remains limited and is becoming even more so as this latter group continues to buy and hold. It is also healthy for the market as it represents supply distribution rather than HODLers losing their conviction.”
bitcoin bull market prospects
The price of bitcoin multiplied from $28,683 in the middle of last week when banks were collapsing in the US, something like Some Believe Bitcoin Was Responsible for the Rally,
BTC price has since consolidated and stood at $26,950.60 at press time. If market analysis from Bitfinex analysts is anything to go by, the market could see a bitcoin bull market that will see it attempt to break above $30,000 anytime from now, especially considering that it is currently in consolidation. .