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Cryptocurrency exchange Bitfinex has published a report indicating its view that the digital asset market might be entering the initial phases of a bull run.
The latest edition of the Bitfinex Alpha report highlights various factors, such as bitcoin’s (BTC) rise to the $35,000 price level and a growing institutional interest in the primary digital asset, suggesting that the market is preparing for a bullish phase.
Bitcoin’s Rise and Significant Liquidations
Bitcoin’s rise to the $35,000 range on October 23 was succeeded by a series of large-scale liquidations. An astonishing $275 million in short positions were eliminated on that day, followed by an additional $153 million the next day. Bitfinex noted that the volume of liquidations was the highest recorded since January 2023, similar to the price level that had not been observed in 17 months.
The market also experienced over $200 million in long liquidations as BTC retraced during the upward trend.
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This movement in Bitcoin was also marked by short-term holders—investors who have held BTC for less than six months—realizing substantial profits. The short-term holder Spent Output Profit Ratio increased intra-day to 1.059, the highest level recorded since April 11. As this metric surpasses one when investors realize profits on their assets, the current figure indicates that short-term holders have taken the largest profits since April.
“A considerable number of investors are now in profit, yet profit-taking among long-term holders remains limited. Such behavior is common following a sharp increase in a bull market and is frequently succeeded by a period of sideways movement or correction,” Bitfinex stated.
Growing Institutional Interest in Bitcoin
As BTC continues to rise, institutional interest in the digital asset has been on the upswing. Bitcoin options monthly volume on the Chicago Mercantile Exchange is projected to conclude October at $2 billion, marking its highest level ever. Concurrently, options open interest is steadily recovering, currently at a monthly total of $1.15 billion, not far from its all-time peak of $1.69 billion.
In addition to the optimistic sentiment in the options market, on-chain data indicates that BTC may maintain its upward trajectory into November. Historical trends show that the bullish momentum of October has extended into November in six out of ten occurrences, suggesting a 60% likelihood that this pattern could recur.
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