November 11 Crypto Boom: BTC Hits Record $1.16 Trillion Market Cap as Crypto Market Reaches New Heights

November 11 Crypto Boom: Bitcoin Soars 17% as Crypto Market Tops $2.7 Trillion Post-Trump Win

Bitcoin (BTC) surged to a record, and the whole cryptocurrency market worth surpassed $2.7 trillion, a high for the year, following Donald Trump’s victory in the U.S. presidential election. With a market valuation of $1.16 trillion, Bitcoin is currently the ninth-largest financial asset. With a 17% increase, the largest cryptocurrency had its second-best week of the year. According to Glassnode data, that is barely short of the 22% increase in the week ending March 3. Knowing who is purchasing Bitcoin and if this is a spot or leverage-driven rally is crucial to determining whether the price of the cryptocurrency may theoretically rise higher or if this represents a local peak.

Spot Cumulative Volume Delta (CVD): Key Indicator for Bitcoin Price Peaks and Dips

The spot cumulative volume delta (CVD), as defined by Glassnode, is the net difference between the buying and selling trade volumes. It emphasizes the volume difference where the buyer or seller is the aggressor. It covers both fiat and stablecoin exchanges in which the quoted currency is the US dollar or a currency comparable to the US dollar.

Coinbase, a cryptocurrency exchange frequently used by American investors and institutions, is the source of the majority of the spot CVD, which also occurs when the Coinbase Premium Index rises. When we zoom out over the last three years, we can see that Coinbase CVD typically peaks around local highs and lows. Bitcoin broke its then-record high above $73,000 in March, resulting in one of the highest CVD levels.

Spot ETFs vs. Basis Trade: Understanding the Impact on Bitcoin Market Dynamics

The question of whether inflows into U.S.-listed spot ETFs are spot buying on their own or a component of a technique called the basis trade has been the subject of much discussion. One strategy for making money off of the difference between spot and futures prices is the basis trade. In order to profit from the price difference, an investor has a long position in an ETF and a short position in the Chicago Mercantile Exchange (CME) futures market.

There were massive inflows when the ETFs were first offered at the beginning of the year. However, bitcoin has been relatively stable since then, indicating that the ETFs’ delta-neutral policy, in large part, prevented them from having as much of an impact. The chief executive officer of cryptocurrency index company CF Benchmarks stated last month that “40% of the ETF inflows were directly down to the basis trade.” The CME exchange’s open interest hasn’t kept pace with the ETF inflows, which have been breaking records.

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