Bitcoin’s surge above the $30K mark not only indicates a milestone in its value, but also signifies a significant shift in investor sentiment towards embracing the potential of cryptocurrency as a mainstream asset.
On-chain metrics are indicating resilience for bitcoin as investors continue to hold onto their coins despite market uncertainty. The digital asset has seen five consecutive daily wins, reaching a three-month high above $30,900. Additionally, the total open interest for bitcoin options contracts across various platforms has reached levels not seen in over two months, totaling over $6.46 billion.
While liquidations for BTC futures reached $31.5 million on Sunday, activity has remained relatively calm compared to the previous week’s $100 million wipeout due to false approval news of a US spot bitcoin ETF. Analysts note a shift in sentiment from “if” to “when” in terms of the SEC approving ETF applications in the coming months.
This shift in sentiment is also reflected in the options market, where the 25 delta skew has tilted towards bullish territory, similar to January’s surge. With the rise in front-end implied volatility, long calendar options strategies may become more appealing, as market participants anticipate ETF approval or increased volatility by late December to early January.
On the other hand, data from CryptoQuant’s Exchange Depositing Transactions for BTC shows that total deposits to centralized platforms have fallen to their lowest levels since May 21. This suggests that individuals are holding onto their coins and expecting a future price rise, as lower deposits indicate a reluctance to sell to the spot market.
Furthermore, declining active addresses indicate that participants are holding onto bitcoin instead of using it for transactions or transferring it to exchanges during periods of profit-taking. The total number of active addresses, when viewed over a seven-day average, has reached its lowest point since December 28.
Overall, these on-chain metrics suggest that bitcoin investors are remaining resilient and optimistic about the future of the digital asset, despite market uncertainties.