Dispatch #214: Bitcoin: A New Horizon Ahead?

Oct 18 4 min read

Dispatch

In this patch of your weekly Dispatch:

The Best Crypto YtD 🗓️

The Surge of Ethereum 🧑‍💻

The World of ETFs 🌏

The Big Idea

Time to Get an All-Time High?

Dispatch has been calling for a patient HODLing approach when it comes to Bitcoin. And that has been logical according to this CryptoQuant analysis, which highlighted BTC was on track for the longest sideways market in a halving year.

But it wouldn’t be Bitcoin without a surprise move.

BTC posted a nice 10%+ increase on the week, crossing $68,000 for the first time since June. Have we come out of the seemingly never-ending range?

Increased Market Liquidity: Crypto markets have become more sophisticated, with Bitcoin's monthly trading volumes averaging $2T, a 76% year-over-year increase. Analysts point to rising on-chain activity, a healthier BTC derivatives market, and positive sentiment from spot Bitcoin ETFs and the halving. Despite recent range-bound trading, the market's maturity indicates the groundwork for the next rally.
Demand Surge: Bitcoin demand rose by 177,000 BTC last week, pushing prices to a ten-week high of $67,800. This surge is fueled by strong institutional interest, including spot ETF purchases, and heightened whale activity, signaling renewed market confidence. Spot Bitcoin ETFs in the U.S. experienced their largest one-day inflow in over four months, totaling $555.9М on October 14. Whales now hold 670,000 BTC.
Bullish Signals: Bitcoin's open interest (OI) weighted perpetual futures funding rate has reached a multi-month high of 0.012%, suggesting short- to medium-term bullish sentiment. This level hasn't been seen since late July when Bitcoin briefly hit $68,000 before a correction. Analysts recommend caution – while a positive funding rate indicates bullishness, it may not be a reliable long-term signal due to the inherent volatility of the crypto market.

All of this sounds like patience could be soon rewarded. How soon you ask? Banking giant Standard Chartered forecasts Bitcoin could reach its previous all-time high of nearly $73,800 as the U.S. presidential election approaches. That probably isn’t the Big Idea everyone is wishing for, but it could be the catalyst for all of our longings.

The Latest In…

Vitalik’s Master Plan

Ethereum developments are regularly documented on Dispatch. This made founder Vitalik Buterin’s latest check-in all the more exciting, revealing a dynamic vision for the blockchain’s next phase, dubbed “The Surge.”

In a recent blog post, Buterin outlined goals to boost Ethereum’s transaction capacity to over 100,000 transactions per second. The first step? The upcoming 2025 Pectra update will focus on transaction compression and improved staking rewards. These advancements aim to create a seamless experience across layer-2 solutions and boost Ethereum as a unified and robust platform for dApps.

The Latest In…

The YtD Asset Award Goes to…

Sui is making serious waves in the crypto arena, with its native token soaring an astounding 185% this year and reaching an all-time high of over $2.20. This meteoric rise makes Sui the best-performing asset year-to-date, outpacing Toncoin (up 124%) and Bitcoin (up 53%).

What’s fueling this remarkable ascent? A burgeoning DeFi ecosystem and the recent launch of USDC on the Sui blockchain have propelled weekly DEX volumes to a staggering $1.45B. Additionally, Grayscale’s Sui-focused investment trust underscores a growing wave of institutional confidence in this blockchain, media reports.

The Latest In…

A (New) Bunch of ETFs

It's not just about Bitcoin anymore; the world of crypto ETFs is expanding, with several notable developments this week.

The Launch of Bitcoin & Gold ETF: The STKD Bitcoin & Gold ETF (BTGD) has debuted, providing 100% exposure to Bitcoin and gold through futures and ETFs. Aimed at hedging against inflation, its launch coincides with the U.S. presidential election, generating speculative interest.
A Litecoin ETF Emerges: Canary Capital has filed for the first U.S. spot ETF for Litecoin (LTC). The CEO believes Litecoin's “fair launch” and proof-of-work model could facilitate approval, positioning it as a competitor to Grayscale’s existing offerings.
Australia's First Ether ETF Begins: Monochrome Asset Management has introduced Australia’s first Ether ETF (IETH), attracting $176,600 in assets on its first day. Following the success of their Bitcoin ETF, this fund highlights the growing potential for crypto ETFs in Australia.

The Latest In…

The Asian Crypto Wave

A rising wave of Asia-based family offices and high-net-worth individuals is making its mark in the digital asset market. According to a report, 76% are already investing in cryptocurrencies, with an additional 16% planning to join them. This surge from just 58% in 2022 signals a strong shift toward crypto as an alternative investment class. 30% state that they plan to increase their digital asset exposure.

Key motivations driving this trend include the potential for higher returns, diversification benefits, and the allure of cryptocurrencies as a hedge against inflation. Notably, 31% of respondents believe Bitcoin could reach $100,000 by the end of the year, fueled by interest rate cuts and favorable developments in the crypto space.

The Week’s Most Interesting Data Story

Big Interest = Big Volatility?

Bitcoin futures open interest has surged to an all-time high, reflecting increasing market confidence but also raising concerns about potential volatility. The high leverage associated with this rise indicates optimism among traders, yet they should brace for sudden price movements that could catch many off guard, some caution. So why not give Demo Trading on Nexo a try, before jumping in the action?