Since the beginning of the year, Bitcoin and altcoins have received widespread attention. Because of the Chinese crackdown, the entire cryptocurrency market experienced turbulence and remained highly volatile. However, after setting a new all-time high in Uptober, industry analysts are expected to be bullish this Moonvember. Notably, the trading volume of the leading crypto asset has continued to fall in recent weeks. Altcoins, on the other hand, have been seen rising to new highs during the same time period. In contrast, while the total market capitalization of Bitcoins fell by 2%, the market capitalization of Ethereum and Solana increased by 1.5% and 17%, respectively.
Analysts anticipate a bullish month for Bitcoin and other cryptocurrencies.
According to an active industry speculator, they are jumping from one coin to the next in an attempt to ride the small waves. According to Alex Kuptsikevich, an analyst at FxPro, it appears to be a win-win situation if the tide is turning. Indeed, the industry’s overall market capitalization is increasing.
Some analysts believe that if the price of Bitcoin crosses $64k, it will soon set a new all-time high. Historically, analysts have observed a slight delayed positive correlation between the traditional and digital markets. As a result, the factors could help prices rise this month, reaching new highs.
Volatility makes it risky to be bullish.
The average BTC funding rate, or the cost of holding long positions in the futures market, remains positive. Traders can also see some bullish signals from the aforementioned factor. According to Arcane Research, the persistently positive finding rates indicate that demand for long exposure in the digital asset market remains high. However, the relatively low long liquidation volumes in the cryptosphere indicate that traders are currently overly reliant on leverage. Nonetheless, Arcane Research cautioned that there is a high risk of high volatility if the entire market falls.
BTC is related to the traditional stock market.
BTC’s correlation with the US stock market has continued to rise over the last month. According to the data, investors’ risk appetite is extremely high. Government bond demand, on the other hand, has been observed to be declining. Such drops may result in an increase in inflation and a slowing of economic growth. Notably, similar statistics were observed in 2019, when the cryptocurrency bear market stabilized and monetary policy became more accommodating, which exacerbated the situation. At the time, such measures aided the asset stock and cryptocurrency markets.