The cryptocurrency market experiences a notable resurgence, with various coins reaching prices not seen in months, sparking discussions about a potential new bull market. The recent performance of the market has suggested that the investors are regaining their confidence and putting bets on the riskier assets amid renewed optimism.
The total crypto market capitalization has surged 2.34% in the past 24 hours, reaching $1.16 trillion at the time of writing. Meanwhile, the trading volume dropped 4.58% to $39.76 billion during the same period. In addition, Bitcoin’s dominance rose 0.07% from yesterday to 51.51%.
This resurgence has been driven by Bitcoin’s recent rally, which was initially triggered by unfounded rumors regarding a Bitcoin Exchange-Traded Fund (ETF). However, a report by Kaiko showed that the open interest in Bitcoin has slipped by around $600 million, as investors assess last week’s fake ETF rumors.
Rollercoaster Ride Of Bitcoin
Bitcoin (BTC) has been on a rollercoaster ride over the past week, initially spurred by false news about the potential launch of a Bitcoin ETF. The open interest in Bitcoin saw a significant uptick, attracting the attention of market participants. However, it took a sharp downturn, with a $600 million drop, after the ETF rumors were debunked.
Open interest refers to the total number of outstanding derivative contracts, like options or futures, that remain unsettled. It focuses on each open position within a specific contract, offering insights into the contract’s liquidity and interest. Notably, it helps gauge whether capital inflow into the contract is rising or falling.
However, during writing, the Bitcoin price added 2.52% to trade at $30,690.84, with its trading volume increasing 44.07% to $18.04 billion. Its market cap was up 2.5% to $599.15 billion from yesterday.
Meanwhile, the largest crypto by market cap has touched the latest highs after August, signaling a bullish sentiment in the market. Notably, the Bitcoin price hit an intraday high of $30,951.27 on October 23, while soaring nearly 10% over the past seven days.
Binance’s Role in Market Volatility
The dynamics of the cryptocurrency market have also been influenced by volumes associated with TrueUSD (TUSD) and First Digital USD (FDUSD). Notably, Binance has played a crucial role in this shift by employing zero-fee promotions that significantly boosted volumes. When these promotions concluded, it led to a notable decline in trading volumes, highlighting the influence of major exchanges in market fluctuations.
Meanwhile, analyst Rekt Capital closely watches Bitcoin’s price movements, suggesting that breaking the $31,000 threshold may invalidate the bearish scenario, potentially paving the way for further upward momentum in the market.
It’s worth noting that the cryptocurrency market remains highly sensitive to both news events and trading activity on major exchanges, making it essential for traders and investors to stay informed and exercise caution amid ongoing market volatility.