Bitcoin (BTC) is not showing signs of frenzy, unlike March, which indicates room for further growth in price, according to K33 Research report published on Oct. 29.

As of press time, BTC was trading at $73,500, roughly $300 away from setting a new all-time high.

Despite the impressive over 8% gain over the past week, Bitcoin’s trading volumes remain subdued. Daily trade volume averages $2.6 billion, nearly half the levels observed in the year’s first quarter. The relatively quiet market activity suggests a healthy, gradual buildup rather than panic-driven buying.

Additionally, Ethereum (ETH) lags behind, with the ETH/BTC trading pair reaching multi-year lows, reflecting a shifting focus in the crypto space toward Bitcoin.

According to the report, Bitcoin’s latest rally to all-time highs has been devoid of the typical euphoria. This paints Bitcoin as a maturing asset poised for sustained momentum amid favorable market conditions and upcoming election influences.

Increased institutional demand

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

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

CME futures also reflect this stability, as their premiums remain closer to funding rate averages than the first quarter’s starkly divergent figures.

The report added that exchange-traded fund (ETF) flows signal robust institutional interest, and this demand supports the expectation of continued gains, particularly as retail investors exhibit far less urgency in the current rally.

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

Elections loom

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Author: Gino Matos