- Bitcoin surges above $30,000 as ETF social volume surges.
- The BTC collateral goes to ATL in the futures market.
The Remarkable Journey of Bitcoin[BTC] towards the $30,000 price range was hailed as an exuberant push driven by optimism. But what exactly has sparked this optimism and how have other important indicators reacted to this recent upward price trend?
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Bitcoin’s rise fueled by optimism
Over the past couple of months, Bitcoin holders and market watchers have witnessed a decline in the price of the asset. However, a positive trend has emerged, allowing the price to regain the level it previously reached at the start of this year.
According to a recent post by Saniment, this bullish movement was driven by a surge of optimism. This led to what could be described as an optimism fueled pump.
Additionally, Santiment pointed out that this optimism could be attributed to the introduction of new cryptocurrency-focused exchange-traded funds (ETFs). ETFs are investment funds that typically track an index or set of assets. In the case of cryptocurrency ETFs, they reflect the price movements of one or more digital tokens.
Additionally, the introduction of these new ETFs has sparked a noticeable increase in social discussion and conversation surrounding them. This increase in social volume coincided with the rise in value of BTC, further contributing to the overall optimism seen in the market.
Bitcoin price turns bullish
Analysis of Bitcoin’s daily time chart revealed a remarkable rise in value, with a gain of more than 13% over the past four days. Notably, the spike in the price of BTC coincided with a significant spike in the social volume of the ETFs mentioned above.
At the time of this writing, Bitcoin was trading at around $30,150, showing a relatively modest increase of less than 1%.
Source: Trading View
Additionally, examination of the Relative Strength Index (RSI) line showed that Bitcoin was in a strong uptrend. The RSI broke above 70 at the time of writing, indicating a strong uptrend and the asset was overbought.
Whales Are Waggling As BTC Price Rises
Coinciding with the price spike on June 21, there was a noticeable escalation in Bitcoin whale trades, reaching their highest level in months. Santiment reported that whale trades peaked during a specific hour, marking the highest volume in more than three months.
Additionally, around 259 trades, each worth more than $1 million, took place just two hours after the price broke above $30,000. At the time of this writing, the total number of whale transactions stood at approximately 138.
Source: Santiment
Less Volatility Expected as Bitcoin Collateral Drops
Recent data from glass knot reported that the open interest percentage on crypto-margined collateral-backed Bitcoin Futures had reached an all-time low (ATL) of 23.3%. This development contributed to reducing the volatility of the underlying collateral. Furthermore, he suggested that the structure of derivatives is improving as derivatives markets mature.
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The Bitcoin Futures Open Interest with Crypto-Margined Collateral metric represents the total value of open Bitcoin futures contracts secured using cryptocurrencies as collateral.
A higher level of open interest indicates increased trading activity. It also indicated greater market participation and increased investor interest in Bitcoin futures. Furthermore, it implies a higher degree of leverage and a potential for market volatility.