What does this mean? (bitfinex)

A week ago, Bitcoin (BTC) broke the March all-time high (ATH) of $73,737 as the crypto market was overjoyed by Donald Trump's victory in the US presidential election. Since then, the crypto asset has registered a new ATH almost every day; After being rejected for $90,000, it was worth $87,100 at the time of writing.

Despite this impressive rally, investors are not interested in taking profits. Bitfinex analysts noted that the rate of profit among BTC investors is significantly lower than in the past, when the cryptocurrency traded above $70,000, despite a structural increase in profit.

Investors' profit taking is low.

According to Bitfinex Alpha, few investors are taking profits. Still, the fresh wave of demand in the market absorbed the minimal selling pressure, highlighting the healthy market conditions.

The new demand and strong investor demand can be seen flowing into US Bitcoin Exchange Traded Funds (ETFs) at a record high last week. These products generated a total of $2.28 billion in net revenue in the three days following the US election.

BlackRock's IBIT alone recorded $1.1 billion in inflows on November 7, following two days of inflows on November 5 and 6. Analysts say the outflow may be due to investors taking risks ahead of the election. In the year As of November 11, EEFs saw collective inflows of $1.12 billion, while IBIT raised over $763 million.

This post-election increase in interest buying is also reflected in the aggregate spot cumulative delta (CVD) measure, which indicates the buying/selling of the spot market on major exchanges. This measure has increased significantly, which highlights the growing demand for market purchases on central exchanges.

BTC to continue upward momentum

In addition to rising ETF income and exchange market buying, open interest for Bitcoin futures and perpetual trading pairs reached an ATH of $45.43 billion.

As we mentioned in previous editions, Bitfinex Alpha's high OI levels are interpreted as indicating a large amount of speculative buying, but high OI readings are not insensitive and, like price, they can easily be adjusted when investors need it. The right price point,” BTfinex said.

Bitfinex says that this increase in investor interest, increased institutional participation and new found interest will make the market stable enough to move higher in the near term.