With Crypto Airdrops, the relation between Big Data and Blockchain, and the rise of Blockchain Applications, Bitcoin (BTC) has seen immense growth in recent years. We have seen more Blockchain Mobile Apps like MetaMask come up, with the increased adoption of Blockchain in the industry. However, that alone cannot explain the mysterious jump since October despite the Cryptocurrency Regulation News in different countries.
BTC has been holding its favorable bullish position since October 1st, when the initial spike to USD 48,200 happened. Meanwhile, Altcoins like Ethereum (ETH), Cardano (ADA), Polkadot (DOT), Bitcoin Cash (BCH), and Dogecoin (DOGE) took a backseat in the cryptocurrency market boost.
Crypto Market Analysis shows investors being more cautious with the bullish trends, with BTC’s long-short ratio reaching below 1. In contrast, however, is the fact that over 80% of Bitcoin is being held in Crypto Hardware Wallets. Meanwhile, investors depend on crypto mining cycles to acquire BTC, suggesting confidence.
This rise in confidence can be attributed to several reasons, including the United States Federal Reserve not banning ERC20 tokens, Stablecoins, or any cryptocurrency. Alternatively, the increased use of Blockchain in FinTech, NFT – Non-Fungible Tokens, and BaaS – Blockchain-as-a-Service could be viable reasons.
Regardless, three specific indicators seem to have caused the bullish market. Let’s take a quick look at these:
1. Traders turned their attention to Decentralized Finance (DeFi): After China’s restrictions on cryptocurrencies, traders turned their focus on decentralized exchange (DEX) like Stellar (XLM) and Binance Coin (BNB). This shows the confidence traders have that the trading volume will have no effect from China’s bans.
2. Favorable markets for shorts: Blockchain Technology news shows that crypto exchange has favored shorts than longs. This bearish trend would reach extreme prices with the market expectations broken.
3. Spike in Binance Futures Open Interest: While the other two points caused a spike in BTC values, what caused a major jump was the sudden growth of Binance Futures Open Interest