Oct 31, 2023: Bitcoin’s recent surge to $35,000 can be attributed to four key factors: volume, implied volatility, market depth, and funding rates, according to data from the digital assets platform Kaiko. Amid a summer trading slowdown and reduced volatility, the market structure experienced a shift following rumors of a fake approval of a Bitcoin spot ETF tied to BlackRock (NYSE:BLK).
Despite increased trading activity, Bitcoin liquidity has remained stable, with order books within 1% of the mid-price remaining steady. Kaiko anticipates near-term volatility to be minimal in the absence of a significant catalyst until December. However, an announcement from the Securities and Exchange Commission (SEC) regarding a spot Bitcoin ETF in January could spur market activity.
The digital asset has displayed negative correlation with equities like the Nasdaq 100 since July, as it was influenced by geopolitical events. Bitcoin recently climbed to its highest level since May 2022.
Source Courtesy: Investing.com
