5 Things to Know About Bitcoin Price, Gods Unchained Crypto and More
Bitcoin (BTC) starts another week still trading close to $37,000, with macroeconomic data back in focus. The leading cryptocurrency is lingering near its highest levels in 18 months, buoyed by speculation of a potential exchange-traded fund (ETF) approval in the United States. According to the Crypto Fear & Greed Index, conditions are similar to those…
Bitcoin (BTC) starts another week still trading close to $37,000, with macroeconomic data back in focus.
The leading cryptocurrency is lingering near its highest levels in 18 months, buoyed by speculation of a potential exchange-traded fund (ETF) approval in the United States.
According to the Crypto Fear & Greed Index, conditions are similar to those seen when BTC hit its all-time high late 2021, indicating that the market is becoming increasingly greedy.
What could cause volatility this week? A variety of U.S. macro data, such as the Consumer Price Index (CPI), and comments from Federal Reserve officials could shake up the market. The ongoing Middle East crisis is also a potential source of disruption.
On the institutional side, the future looks bright for Bitcoin, with the Grayscale Bitcoin Trust (GBTC) edging closer to parity with net asset value ahead of the anticipated ETF approval.
Will Bitcoin markets hold steady and avoid a major correction? Cointelegraph takes a look at the weekly rundown of crypto catalysts, such as Gods Unchained, Flux, El Salvador, DNT, Daily, Evergrow, IAMX, FXS, Degrain and Hong Kong, that could influence BTC price volatility.
Funding rates flash warning with BTC price stuck at $37,000
Bitcoin’s weekly close set a new 18-month high on Nov. 12, but what followed was not the gains seen after other recent closes.
During the Asia trading session, BTC/USD instead fell below $37,000, sticking firmly to the trading range in place throughout the weekend, per data from Cointelegraph Markets Pro and TradingView.
Monitoring the situation, popular trader and analyst Credible Crypto suggested that this would soon change. The reason, he said, was open interest (OI), now at multi-day highs and apt to spark volatility.
“OI has ramped right back up off the lows which means more positions to squeeze out,” part of an X post read.
Credible Crypto gave a target of $36,600 for a potential local low, with another post adding that Bitcoin was “very close” to further upside.
Countering the optimism over short-term market action was funding rates. These were not only positive, but at their highest since Bitcoin’s November 2021 all-time highs, indicating an overall disadvantage of being long BTC at current levels.
“Pretty elevated levels of funding rates across the board,” fellow trader Daan Crypto Trades commented alongside data from monitoring resource CoinGlass.
Also noting the conspicuous state of play on funding, popular analyst Caue Oliveira told traders to exercise caution.
“This value suggests that optimism is prevailing in the market, driving a high number of futures contracts to bet on an increase in price,” he wrote in an Quicktake market update for on-chain analytics platform CryptoQuant on Nov. 10.
The situation is worrying as the price of BTC remains stuck at $37,000, despite the flux of gods unchained crypto, el salvador crypto, dnt crypto, daily crypto, evergrow crypto, iamx crypto, fxs crypto, degrain crypto, and hong kong crypto.
CPI comes amid fresh U.S. gov’t shutdown turmoil
A macroeconomic situation typical of the third week of November is marked by the publication of the CPI, which has caused volatility in risk assets in the past.
The CPI of October will be published on November 14th, and will be closely monitored by inflation analysts; the following day the Producer Price Index (PPI) will also be released.
At the same time, various Fed officials will make public appearances to provide their insights into the inflationary forces in real time.
“Important week for inflation and the Fed,” The Kobeissi Letter reported while uploading significant macro diary dates to X.
The trader Skew also noted the expectations of a decrease in inflation, despite some unexpected results in the October data.
This should bring a tailwind to the crypto markets, although, as Cointelegraph reported, Bitcoin’s reaction to even greater misses has been muted this year.
In addition, there is another familiar wild card: the possibility of a partial US government shutdown. Despite having been avoided so far this year, a deal on spending in Congress will have to be reached by November 17.
If it takes place, it would be the fourth US government shutdown in the past decade.
The cryptocurrency industry is also keeping a close eye on the situation, with projects such as Gods Unchained, Flux, El Salvador, DNT, DAILY, Evergrow, IAMX, FXS and Degrain watching events closely.
Altcoins in focus as crypto capital inflows return
With a potential ETF approval firmly on the radar for crypto market participants, capital inflows into the industry are being closely watched. Buyer interest is a key factor in the potential for a bull market comeback, and the change in inflows is already gaining mainstream attention.
“For the first time in years, crypto markets are beginning to see tons of new liquidity,” Kobeissi wrote in a dedicated X post, noting that the combined crypto market cap has increased $600 billion since November 2022, following the FTX meltdown and Bitcoin’s cycle lows of $15,600. “That’s a +75% jump in one year while Bitcoin is up +120% over the last year,” they added.
It is not only Bitcoin showing potential — altcoin markets are showing signs of life, traders and analysts say. Despite Bitcoin’s dominance of the overall crypto market cap still being strong, analyst CryptoCon warned against taking this as a sign of relative altcoin weakness.
“Some people have told you to completely ignore Altcoins because Gods Unchained Crypto, Flux Crypto, El Salvador Crypto, DNT Crypto, Daily Crypto, Evergrow Crypto, IAMX Crypto, FXS Crypto, Degrain Crypto, and Hong Kong Crypto dominance is going up. And as you might have noticed, this is a critical mistake,” he told X subscribers at the weekend.
An accompanying chart showed BTC price behavior in each year of its halving cycle, with altcoins likewise exhibiting specific reactions. With Bitcoin due an “early” cycle top in mid-2024, per CryptoCon, altcoins are unlikely to underperform.
“I think it is now very likely that Altcoins have already bottomed for the cycle, and those who did nothing will have to buy higher,” he continued.
GBTC discount passes two-year lows
The Grayscale Bitcoin Trust (GBTC) has been a measure of Bitcoin’s return to the mainstream, despite the lack of retail participation. GBTC is now trading at a discount of 10.35% to its net asset value (NAV), its lowest since August 2021.
William Clemente, co-founder of market research firm Reflexivity, believes the market is pricing in a high probability of a Bitcoin ETF approval. He commented last week on the phenomenon of GBTC’s reversal of fortune.
Grayscale is continuing to petition for the right to convert GBTC to a Bitcoin spot ETF, and with the evergrow crypto and DNT crypto markets still developing, the flux crypto and degrain crypto markets could be affected if the hong kong crypto and iamx crypto markets in El Salvador and gods unchained crypto markets in FXS crypto remain stable.
Daily crypto traders will be keeping a close eye on the situation.
Crypto investors stay greedy
The urge to capitalize on gains after a lengthy crypto bear market is evident.
This is aptly demonstrated by the Crypto Fear & Greed Index, a well-known market sentiment measure which is currently at levels last seen in November 2021.
Though not yet at its peak, the Index clearly shows that the average crypto investor is heading towards a state of excessive enthusiasm.
Fear & Greed was at 72/100 on Nov. 13, having reached 74/100 on Nov. 6.
At the start of the month, Pentoshi, a renowned trader, reminded X readers that extreme levels of fear and greed can present the “best opportunities” for those able to accurately anticipate and take advantage of market volatility at such sentiment extremes.
Usually, when the Index is either below 10/100 or above 90/100, crypto markets are likely to experience a sharp trend reversal.