Market Watch Weekly is a review of crypto markets and developments each week.
Bitcoin (BTC) has rallied since last Monday, breaking through the resistance levels of $12,000 and $13,000 and going as high as $13,315 on Sunday, as per the OKEx BTC spot price. The leading digital currency posted gains of over 13.50% for the week as the total cryptocurrency market capitalization rose just above $400 billion.
Bitcoin’s performance, in line with historic trends, also benefited major altcoins. Litecoin ( LTC) was the best performer, gaining 24.63% last week, while Bitcoin SV ( BSV) and Bitcoin Cash ( BCH) also surged 15.40% and 9.72%, respectively.
It is worth mentioning that Chainlink ( LINK) also resumed its bullish momentum, bottoming out near $10 and quickly rebounding to gain 12.55% for the week.
The correlation between Bitcoin, the stock market and gold has been the focus of the market since the global asset price crash in March. Market participants have also been speculating about the robustness of Bitcoin as a store of value and a safe-haven asset. Interestingly, however, last week’s BTC surge had little to do with traditional financial markets.
According to blockchain analytics platform Santiment’s data, Bitcoin’s 30-day rolling correlation to the S&P 500 has dropped back to 0 for the first time since May. This correlation hit an all-time high of 0.80 in August this year.
Meanwhile, traders continue to focus on whether Bitcoin can form a more independent trend in the fourth quarter, and if the price can move upward from the $13,000 mark in the short term.
Readers interested in a deeper technical analysis of BTC and Ether (ETH) can jump to the recently released Crypto Market Daily article.
CME released the latest (as of Oct. 20) Bitcoin futures position data on Oct. 24. The market moved higher, with barely any significant pullback during this reporting period — and open interest increased from 9,353 to 10,896, indicating that the bullish momentum was driving traders.
According to the report, long positions held by asset-manager accounts went up from 702 to 874, hitting an all-time high. There have also been two consecutive weeks of zero short positions on asset managers’ accounts, showing a strong bullish sentiment.
Meanwhile, leveraged funds were holding the highest long and short positions together in two months. This proves that leveraged funds are fully participating in the Bitcoin market through different strategies.
The biggest daily rise last week came on Wednesday, when PayPal announced its support for Bitcoin and other cryptocurrencies. This development, coupled with positive news coming from companies like Square, indicates Bitcoin’s growing attractiveness for institutional investment.
Notably, CME’s Bitcoin futures open interest is now the second largest, after OKEx, further affirming the rise in institutional interest.
Exchange BTC futures open interest ($bn). Source:Skew
Visit https://www.okex.com/ for the full report.
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Bitcoin decouples from stocks to fight for $13K with institutional backing was originally published in OKEx Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.