- Bitcoin’s price reached US$94,902, with its market cap climbing to US$1.87T, surpassing silver and nearing Amazon in global asset rankings.
- US spot ETFs have mitigated 90% of the sell-off from long-term holders, but rising sales now outpace ETF inflows, increasing market uncertainty.
- Elevated unrealised profits and a Fear & Greed Index above 80 hints at potential market consolidation as traders weigh holding or selling.
Bitcoin has surged to an all-time high of US$94.902 (AU$145K), supported by a remarkable influx of capital from both spot markets and exchange-traded funds (ETFs).
Over the past 30 days, the crypto market has seen inflows exceeding US$65B (AU$99B), with Bitcoin taking centre stage in the rally, naturally.
Related: Bitcoin Hits High at $94,002 Amid Rapid Crypto Evolution and Bold Policy Moves
Bitcoin Market Cap Outranking Silver
Institutional investment, particularly through US spot exchange-traded funds, has been a key factor in stabilising the market during this historic rise. Moreover, the recent rally has seen consistent capital inflows, pushing BTC’s market capitalisation to US$1.87T (AU$2.87T), making it the 7th largest asset globally, outranking notable assets such as silver and Saudi Aramco and narrowing the gap with Amazon, which remains just 20% ahead.
Compared to traditional commodities, Bitcoin’s quarterly performance is unprecedented. While gold and silver posted gains of 5.3% and 8%, respectively, Bitcoin surged by over 41% in the last 30 days, clearly suggesting a potential shift in investor preference toward digital assets as an alternative store of value.
Sellers Exert Pressure on BTC Price
As Bitcoin reaches a new historic price, long-term holders are cashing out, but US spot ETFs have absorbed 90% of the selling pressure. Institutional demand has intensified, with weekly ETF inflows ranging between US$1B and US$2B (AU$1.53B and AU$3.07B) since mid-October.
However, a recent Glassnode report notes that since November 13, long-term holder selling pressure has outpaced ETF demand, echoing a pattern seen earlier this year. This dynamic has historically led to market consolidation and increased volatility, raising questions about whether ETFs can continue to offset growing sell-side pressure.
Moreover, metrics like the MVRV ratio and Net Unrealized Profit/Loss (NUPL) indicate that investors are experiencing elevated unrealised gains, prompting some to sell. Between October 8 and November 13, LTHs sold approximately 128,000 BTC, resulting in a net balance decline of over 200,000 BTC since Bitcoin crossed US$75,600.
Despite this, long-term holders still control a substantial portion of Bitcoin’s supply, suggesting that many are holding out for even higher prices. Historically, such behaviour has marked the beginning of the most intense phases of prior bull markets.
Is it Over?
According to CryptoQuant, this is a complex time where traders have one simple question: to sell or hold.
The analytics firm highlighted several warning signs for users, starting with the Crypto Fear & Greed Index, which is currently above 80.
Generally, when the index exceeds a value of 80, caution is advised. While the market can continue to rise during times of high greed, this often signals that a top is near.
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