Bitcoin: Can ETF hype improve the state of BTC?

Bart Millican November 29, 2023
Bitcoin: Can ETF hype improve the state of BTC?

Bitcoin [BTC] saw a massive surge in price over the last few months. One of the major reasons for the spike in price was the interest showcased by large institutions in Bitcoin ETFs.

Glassnode found that many people are interested in Bitcoin ETFs, expecting $70.5 billion in investments. October was all about waiting for rules on this, making big investors more interested.

Bitcoin led the positive trend, going up by 28% in a month and 108% in the year. Other cryptos, like Solana, also did well, showing a general market improvement.

If the Spot Bitcoin ETF gets approved, pro investors might invest a lot.

Bitcoin’s holding style and less available supply might be like what happened with gold ETFs. We look at this by checking where money might come in and how much Bitcoin is really out there.

Glassnode sorts Bitcoin holders into Long-Term Holders (LTHs) and Short-Term Holders (STHs) based on how long they keep it.

LTHs keep it for more than 155 days, usually buying when things are bad and selling when the market is strong. STHs keep it for less time and react more to short-term market changes.

This helps to analyze the market, plan trading, and manage risks, giving insights into different investor groups and stages of the market cycle.

Looking at the state of the traders, it was seen that 108,000 Bitcoin options are about to expire. The end of these options suggested a moment of decision for traders. With a Put Call Ratio of 0.83, more people are betting on the price dropping.

The max pain point at $33,000 means many traders might lose money if the price stays around there.

The total value of these options is a huge $4.04 billion, indicating a significant impact on the market depending on how these options play out.

At press time, BTC was trading at $37,409.08 and its price had grown by 0.3%. Only time will tell whether BTC will grow further.

Bart Millican