Bitcoin price increase to USD 16,2000 with record volume at the same time


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Bitcoin (BTC) has had a great November so far, and many analysts believe that the future remains bright for the top-ranked cryptocurrency.

The price is currently at $ 16,000 and is up 23% since the beginning of the month. It mainly recovered after the US presidential election ended. Now, the Bitcoin spot volume has broken all previous records in 2020, showing the growing demand for the BTC acquisition.

The strong rally to $ 16,200 last month resulted in a more than 270% increase in Bitcoin spot volume. According to a recent report from Arcane Research, daily volume on November 5th was the highest since the Black Thursday crash that saw BTC price drop below $ 4,000 on March 13th.

Real BTC daily volume. Source: Arcane research

Market sentiment is also reaching record numbers, which is clearly reflected in the Crypto Fear & Greed Index, which currently stands at 86 and is a reflection of the extreme greed in the market.

Fear & Greed Index (daily). Source: Digital asset data

Many seasoned investors counter the signal from the index as “extreme greed” reflects the FOMO – the fear of missing out – or the euphoric sentiment in the market and a sign of profit-taking.

The institutional volume continues to grow

Not only is the spot volume for Bitcoin hitting its 2020 highs, but institutional interest was widespread in November as well. Several high profile companies and high net worth individuals are investing in bitcoin.

Open interest in Bitcoin futures at CME also rose to an all-time high last week at $ 934 million. The number has increased since early October and increased 169% in the last month.

CME bitcoin futures open interest. Source: Arcane research

According to Arcane Research, the growth in attendance could be the main reason for the surge in open interest. Reports from the Commodity Futures Trading Commission show that there are currently 102 large traders holding positions (the minimum size is 25 BTC), an increase of 126% over the averages for all of 2019.

Will Bitcoin Price Go Up As More Participants Enter The Market?

Increasing participation in both spot trading and regulated Bitcoin products is clearly having an impact on the current Bitcoin uptrend and potentially the perception of digital wealth by institutional and traditional retail investors.

As the volume of prime exchanges and regulated derivatives markets continues to grow, it is possible that an exchange traded Bitcoin fund could get final approval and this would really open the gates for institutional investors to get in touch with Bitcoin and other crypto assets.