Increased demand and heightened volatility signal further upside for Bitcoin – Glassnode

Profit volumes in Bitcoin addresses are 47 higher than losses, while options show record in open interest levels.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Bitcoin (BTC) soared to a new all-time high on Nov. 6 and is poised for further upside, spurred by significant institutional and retail capital inflows and rising market volatility, according to Glassnode’s latest “Week On-chain” report.

The landmark surge comes amid monthly net capital inflows totaling $2.5 billion, lifting Bitcoin’s market Realized Cap — a key metric indicating net capital investment — by 3.8% over the past 30 days.

The Realized Cap now stands at a record-breaking $656 billion, fueled by fresh capital entering the market.

Options driving volatility

The options market has mirrored Bitcoin’s upward momentum, with open interest levels nearing record highs at $25.2 billion, just shy of the all-time peak of $30.2 billion seen in March.

Meanwhile, options trading volume has also jumped to $2.9 billion, reflecting heightened investor interest in Bitcoin’s future price movements. The report noted that a near-even split between put and call options indicates investors are preparing for both potential gains and downside risks.

The report also highlighted that the volatility risk premium (VRP) now sits at 27.9%, indicating that traders expect substantial price swings ahead. This elevated implied volatility for short-term Bitcoin options reflects a market bracing for turbulent action, a sign that the crypto space may witness further price gains or fluctuations in the days to come.

ETF demand remains strong

Demand for Bitcoin-based ETFs, which have been a significant driver of capital inflows, showed mixed trends this week.

US-listed Bitcoin ETFs saw outflows of nearly $658 million from Nov. 4 to Nov. 5, attributed to investor caution around potential post-election market volatility. However, over $2.2 billion in inflows were recorded over the entire past week, pointing to sustained investor interest in these products as Bitcoin prices surge.

Meanwhile, the ETFs saw significant volume on Nov. 6, with BlackRock’s IBIT recording over $1 billion in trading volume within the first 20 minutes of trading. Analysts believe this could be a sign that the strong inflows from the past week will continue in the coming days.

According to Glassnode, the achievement of a new all-time high could attract more ETF investors, particularly those drawn to Bitcoin’s strong upward momentum.

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