According to Glassnode’s latest “Week on Chain” report, BTC surged to a new all-time high on November 6 and is expected to rise further, especially stimulated by large institutional and retail capital inflows and rising market volatility.
The milestone surge came amid a total monthly net capital inflow of $2.5 billion, lifting BTC’s realized market capitalization by 3.8% over the past 30 days.
Driven by new capital entering the market, the total real capitalization of the BTC market has now reached a record high of US$656 billion.
Options markets mirror BTC’s upward momentum, with open interest near all-time highs at $25.2 billion, just shy of March’s all-time high of $30.2 billion.
At the same time, options trading volume also jumped to $2.9 billion, reflecting investors’ increased interest in BTC’s future price movements.
The report noted that the ratio between put options and call options is almost even, indicating that investors are positioning for both potential gains and downside risks.
The report also highlighted that the volatility risk premium (VRP) currently stands at 27.9%, indicating that traders expect large price swings in the future.
The rise in implied volatility of short-term BTC options reflects that the market is preparing for volatile movements, which indicates that the Crypto asset space may see further price increases or fluctuations in the coming days.
Demand for BTC ETFs, which has been an important driver of capital inflows, has shown mixed trends this week.
From November 4 to November 5, BTC ETFs listed in the United States saw outflows of nearly $658 million as investors became cautious about potential market volatility after the election.
However, throughout the past week, BTC ETFs recorded inflows of over $2.2 billion, indicating continued high investor interest in these products as BTC prices surge.
Meanwhile, ETFs saw significant trading volume on November 6, with BlackRock’s IBIT recording more than $1 billion in volume in the first 20 minutes of trading.
Analysts believe this could be a sign that the strong inflows seen over the past week will continue in the coming days.
According to Glassnode, setting new all-time highs could attract more ETF investors, especially those attracted by BTC’s strong upward momentum.
