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bitcoin

Bitcoin Expected To Gain From Rising Volatility In Options Market And Boosted On-Chain Inflows

Ash Tiwari
by Ash Tiwari
10 months ago
·
Posted in Bitcoin News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

While the victory for pro-crypto US presidential candidate Donald Trump has benefited Bitcoin (BTC), the top digital asset is expected to experience further gains from increasing volatility in the options market and expanding on-chain capital inflows.

Further Upside For Bitcoin On The Horizon?

GlassNode’s latest “Week On-Chain” report suggests BTC’s price will likely maintain its upward momentum, driven by two key factors.

Related Reading: $371 Million In Crypto Shorts Sacrificed As Bitcoin Sets New All-Time High

The report highlights the rising volatility in the BTC options market and the expansion of on-chain capital inflows as primary drivers that could further propel the price of top digital assets.

According to the report, the total open interest across BTC options contracts has reached $25.2 billion. For comparison, open interest was only higher during March 2024 when BTC made its then-all-time high (ATH) of $73,737.

Bitcoin
Source: Glassnode

A high amount of open interest in BTC options could signal increased participation from both institutional and retail investors. Such heightened activity often amplifies existing price momentum, potentially pushing the underlying asset’s price even higher.

Additionally, options trade volume recently reached $2.9 billion, second only to the trading volume in March and during the yen-carry unwind on August 5. 

Rising options trade volume typically signals greater institutional investment, often fueled by BTC reaching new ATHs.

bitcoin
Source: Glassnode

The report adds that since September, net on-chain capital inflows into BTC have witnessed a substantial increase, showcasing a rising appetite among investors to allocate capital to the digital asset. It adds:

The Bitcoin Realized Cap has increased by 3.8% over the last 30 days, which is one of the higher inflow levels since January 2023. The Realized Cap is currently trading at an ATH value of $656B, supported by a net 30-day capital inflow of $2.5 billion.

For the uninitiated, a rise in realized cap indicates that more BTC is being held at higher prices. This often suggests that investors are long-term bullish on BTC, leading to reduced selling pressure and, subsequently, more room for higher prices.

bitcoin
Source: Glassnode

Analysts Continue To Be Bullish On BTC

At the time of writing, BTC has a market cap of $1.49 trillion, and analysts remain optimistic about its potential for further expansion.

Related Reading: Here’s What To Expect From The Bitcoin Price In November After Breaking Above $70,000

For instance, a recent report by digital assets custodian Copper.co noted that BTC’s bullish price momentum may extend into 2025, with projections of a $100,000 price by January 20.

Similarly, Ki Young Ju, CEO of on-chain and market data analytics firm CryptoQuant said yesterday that BTC may rise about 30% to 40% from its current market price, potentially sending the asset’s price to anywhere between $90,000 to $100,000.

However, amid this optimism, investors are advised to exercise caution to avoid potential losses due to Bitcoin’s volatile price movements.

Keeping an eye on data points such as open interest, and BTC exchange-traded funds (ETF) outflows could help traders mitigate risk. BTC is trading at $75,389 at press time, up 1.3% in the last 24 hours.

bitcoin
BTC trades at $75,389 on the daily chart | Source: BTCUSDT on TradingView.com
Featured Image from Unsplash.com, Charts from Glassnode and TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
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Ash Tiwari

Ash Tiwari

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Ash is a seasoned freelance editor and writer with extensive experience in the blockchain and cryptocurrency industry. Over the course of his career, he has contributed to major publications, playing a key role in shaping informative, timely content related to decentralized finance (DeFi), cryptocurrency trends, and blockchain innovation. His ability to break down complex topics has allowed both seasoned professionals and newcomers to the industry to benefit from his work. Beyond these specific roles, Ash's writing expertise spans a wide array of content, including news updates, long-form analysis, and thought leadership pieces. He has helped multiple platforms maintain high editorial standards, ensuring that articles not only inform but also engage readers through clarity and in-depth research. His work reflects a deep understanding of the rapidly evolving blockchain ecosystem, making him a valuable contributor in a field where staying current is essential. In addition to his writing work, Ash has developed a strong skill set in managing content teams. He has led diverse groups of writers and researchers, overseeing the editorial process from topic selection, approval, editing, to final publication. His leadership ensured that content production was timely, accurate, and aligned with the strategic goals of the platforms he worked with. This has not only strengthened his expertise in content strategy but also honed his project management and team coordination skills. Ash's ability to combine technical expertise with editorial oversight is further bolstered by his knowledge of blockchain analysis tools such as Etherscan, Dune Analytics, and Santiment. These tools have provided him with the data necessary to create well-researched, insightful articles that offer deeper market perspectives. Whether it’s tracking the movement of digital assets or analyzing blockchain transactions, his analytical approach adds value to the content he produces, ensuring readers receive accurate and actionable information. In the realm of content creation, Ash is not limited to just cryptocurrency markets. He has demonstrated versatility in covering other emerging technologies, market trends, and digital transformation across various industries. His in-depth research, coupled with a sharp editorial eye, has made him a sought-after professional in the freelance writing community. From developing editorial calendars to managing content delivery schedules, he has honed a meticulous approach to project management that ensures timely, high-quality work delivery. Throughout his freelance career, Ash has consistently focused on improving audience engagement through well-researched, insightful, and relevant content. His ability to adapt to the evolving needs of clients, whether it's enhancing the visibility of digital platforms or producing thought-provoking pieces for a wide range of audiences, sets him apart as a dynamic force in the field of digital content creation. His contributions have helped to shape a well-rounded portfolio that showcases his versatility, technical expertise, and dedication to elevating the standards of journalism in blockchain and related sectors.

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