Source: cryptoslate
Compiled by: Blockchain Knight
According to Glassnode's latest 'Weekly On-chain' report, BTC surged to an all-time high on November 6, with further upward potential, especially stimulated by significant inflows from institutions and retail investors, as well as rising market volatility.
This milestone surge occurred amid a total monthly net capital inflow of $2.5 billion, with BTC's market realized capital rising by 3.8% over the past 30 days.
Driven by new capital entering the market, BTC's market realized capital (RealizedCap) has now reached a record $656 billion.
The options market reflects BTC's upward momentum, with open contracts nearing an all-time high of $25.2 billion, just shy of March's record level of $30.2 billion.
Meanwhile, options trading volume also jumped to $2.9 billion, reflecting increased investor interest in BTC's future price movements.
The report indicates that the ratio between put options and call options is nearly balanced, suggesting that investors are preparing for potential gains and downside risks.
The report also emphasizes that the Volatility Risk Premium (VRP) currently stands at 27.9%, indicating that traders expect significant price fluctuations in the future.
The rise in short-term BTC options implied volatility reflects that the market is preparing for turbulent trends, suggesting that further price increases or volatility may occur in the crypto asset space in the coming days.
Demand for BTC ETFs has been a significant driver of capital inflows, and this week, that demand showed a mixed trend.
From November 4 to November 5, nearly $658 million flowed out of BTC ETFs listed in the U.S., as investors remained cautious about potential market volatility following the elections.
However, over the past week, BTC ETFs recorded over $2.2 billion in inflows, indicating sustained investor interest in these products as BTC's price surged.
Meanwhile, the ETF saw significant trading volume on November 6, with BlackRock's IBIT recording over $1 billion in trading volume within the first 20 minutes of trading.
Analysts believe this may signal that the strong inflows from the past week will continue in the coming days.
According to Glassnode, reaching a new all-time high may attract more ETF investors, particularly those drawn by BTC's strong upward momentum.
