Diversitas

Crypto Market Pulse👀

• Positive Coinbase Premium✅
• Open interest nicely dropped✅
• Overleberaged longs got taken out✅
• ETFs bought $294,3 million worth of $BTC 🤔
• The odds of Trump winning surged to 65,9% 👀

Overall, we expect a fast recovery followed by a continuation over the coming days!

1. Market Overview

As anticipated, the rally continues to gain momentum as we approach the U.S. elections. We see bullish signals across all timeframes, indicating that the uptrend will likely continue. Bitcoin successfully broke out of its prolonged consolidation and printed the 4th highest weekly close ever. The bulls are clearly in control!🔥

P.S. Considering the high open interest, we can expect increased volatility over the coming days🤔We will likely see short-term price swings in both directions to liquidate overleveraged positions👀

2. ETF Flows

U.S. Bitcoin ETFs had a remarkable week, with $2.1 billion flowing into the funds. Total $BTC inflows have now surpassed $21 billion in their first year—about 10 times higher than the inflows Gold ETFs saw in their initial year.

• $BTC ETFs Weekly Flow: +$2.1 billion💸
• $ETH ETFs Weekly Flow: +$78.8 million🤑

Institutions are steadily increasing their exposure to crypto, demonstrating growing confidence in this emerging asset class👀

3. On-Chain Data

• Coinbase Premium: Slightly negative🤔
• Exchange Reserves: Extremely Low✅
• MVRV Ratio: 2,1 (cycle top usually above 3.7)✅
• Open Interest: Reached New ATH😨
• Funding Rates: Moderate🤔
• Fear and Greed Index: 72 (Greed)👀

Bitcoin’s price rallies have historically been driven by strong demand growth. In 2020-202, demand peaked at 490K-550K BTC, propelling prices to new all-time highs. Currently, demand sits at just 182K BTC, indicating that we are still early in the cycle with significant potential for future growth.

4. Top Weekly News

US SEC Gives Green Light for Options Listing for Spot Bitcoin ETFs to NYSE

https://www.reuters.com/markets/us/us-sec-gives-green-light-options-listing-spot-bitcoin-etfs-nyse-2024-10-18/

Singapore's DBS Bank Starts New Suite of Tokenized Banking Services for Institutional Clients

https://www.coindesk.com/business/2024/10/18/singapores-dbs-bank-starts-new-suite-of-tokenized-banking-services-for-institutional-clients/

ECB Lowers Rates and Eyes More Cuts as Economy Sags

https://www.reuters.com/markets/rates-bonds/ecb-set-second-straight-rate-cut-economy-stagnates-2024-10-16/

Mow Advocates for Bitcoin State Adoption at German Bundestag

https://www.bitget.com/news/detail/12560604285409

Blockstream secures $210 Million to Drive Layer 2 Growth and Expand its Bitcoin Treasury

https://www.theblock.co/post/321074/blockstream-funding-layer-2-mining-bitcoin-treasury?utm_source=twitter&utm_medium=social