Bitcoin ETF speculation drives 16-month high and divergence of stock markets. Bitcoin rally leads to increase in trading volume and lack of liquidity. Implied volatility rises as BTC correlation with Nasdaq-100 turns negative. Number of canceled stores reaches all-time high. crvUSD remains stable in the bear market.

Bitcoin ETF speculation drives 16-month high and divergence of stock markets. Bitcoin rally leads to increase in trading volume and lack of liquidity. Implied volatility rises as BTC correlation with Nasdaq-100 turns negative. Number of canceled stores reaches all-time high. crvUSD remains stable in the bear market.

According to a report from cvj.ch, ETF speculation is causing Bitcoin to still trade at a 16-month high and be very different from stock markets. There has been a shift in market structure over the past two weeks as trading volumes and volatility have increased. Trading volume reached a six-month high on October 24th. Altcoins have also benefited from this rally, as volume on central exchanges has exceeded $15 billion. Despite the increase in trading activity, liquidity remains unchanged, meaning the rally is not yet complete. Derivatives markets are also seeing an impact as funding rates for perpetual futures markets have turned positive and open interest is rising again. Implied volatility (IV) has also increased, particularly for options with expirations in the next two weeks. This increase suggests that the market is expecting short-term volatility in December without any significant volume-inducing catalysts. Interestingly, the correlation between Bitcoin and the Nasdaq 100 index is negative for the first time since July. The number of delisted markets on exchanges has also reached an all-time high as low volume and liquidity pose a challenge. In terms of stablecoins, Curve Finance's crvUSD has maintained its stability and the market cap is around $125 million.

These developments in the crypto market have various impacts on the market and the financial industry. The rising Bitcoin price and increased trading volume are attracting interest from investors and traders. This may lead to increased activity in the market and potentially lead to further price increases. The rising volatility and refinancing rates of the derivatives markets also indicate that investors are again more optimistic about the future of the crypto market.

The fact that the correlation between Bitcoin and the Nasdaq-100 index is negative shows that the crypto markets and the traditional markets are no longer closely linked. This could mean that investors view cryptocurrencies as an alternative asset class and invest more in cryptocurrencies during times of uncertainty in traditional markets.

The high number of canceled markets on the central exchanges shows that liquidity in the market continues to be a problem. This may result in a smaller selection of tradable instruments and limit trading. It remains to be seen whether this trend will continue and what impact this will have on the crypto market and exchanges.

Overall, current developments on the crypto market show that the market is recovering and is recording increased activity. This can present both opportunities and risks for investors. It will be exciting to see how the market will develop in the coming weeks and months.

Source: According to a report by cvj.ch