Bitcoin approaches record peak with consistent indicators, suggesting potential for additional growth – K33 Research

Bitcoin (BTC) is not exhibiting signs of excitement, in contrast to March, suggesting potential for additional price increases, according to a K33 Research report released on Oct. 29.

At the time of writing, BTC was priced at $73,500, approximately $300 shy of establishing a new all-time high.

Despite a notable gain of over 8% in the past week, Bitcoin’s trading volumes remain low. The daily trading volume averages $2.6 billion, nearly half of the levels seen in the first quarter of the year. This relatively calm market activity indicates a healthy, gradual accumulation rather than panic-driven purchases.

Moreover, Ethereum (ETH) is trailing, with the ETH/BTC trading pair hitting multi-year lows, indicating a shift in focus within the crypto sector towards Bitcoin.

The report states that Bitcoin’s recent ascent to all-time highs has occurred without the usual excitement. This positions Bitcoin as a maturing asset ready for sustained momentum amid favorable market conditions and impending electoral influences.

Increased institutional demand

Current market conditions in futures contracts show a more balanced and less leveraged environment compared to March and April, when speculative trading was prevalent.

Bitcoin’s annualized funding rates now average 10.83%, significantly lower than the high 32.17% rate observed during the first quarter. This indicates a cooler, more cautious approach among investors.

CME futures also demonstrate this stability, as their premiums are closer to funding rate averages than the starkly divergent figures from the first quarter.

The report noted that exchange-traded fund (ETF) flows indicate strong institutional interest, and this demand supports the expectation of ongoing gains, particularly as retail investors show considerably less urgency in the current rally.

Additionally, the recent notional flows have reached higher averages than the peak in the first quarter, reinforcing the thesis of institutional interest.

Elections loom

In line with other analysts’ forecasts, K33 Research anticipates potential gains for the crypto market if former US president Donald Trump secures victory in the election.

With favorable odds and various campaign promises aimed at a supportive regulatory approach to digital assets, the report highlighted that a Trump win could trigger a surge across the crypto market.

On the other hand, a victory for Vice President Kamala Harris might dampen this momentum, although it could also be less antagonistic towards the crypto industry in the US. Therefore, a Harris administration might alleviate some market uncertainty, benefiting Bitcoin and the broader crypto market.

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