“Bitcoin Rides High as Macro Data Returns“
The largest cryptocurrency is riding high near $37,000, and excitement over a potential ETF approval in the United States is driving sentiment. The Crypto Fear & Greed Index indicates that greed is increasing, with conditions similar to those seen when BTC price action hit its current all-time highs.
A significant external trigger could produce volatility in the coming days. A raft of U.S. macro data, including the Consumer Price Index (CPI), has the potential to disrupt any sideways trading activity across risk assets. Multiple officials from the Federal Reserve are also due to speak, and the precarious geopolitical situation in the Middle East grinds on in the background.
Funding rates are flashing a warning sign as Bitcoin’s price remains stuck at $37,000. Popular trader and analyst Credible Crypto suggested that open interest (OI) is at multi-day highs and could spark volatility soon.
CPI Leads a Deluge of Data Prints
A classic macro setup marks the third week of November with CPI leading a deluge of data prints. Various Fed officials will provide insights into the Fed’s perspective on inflationary forces in real time.
A partial U.S. government shutdown may be in the making ahead of the Nov. 17 deadline, which would be only the fourth in the U.S. in the past 10 years.
Altcoins in Focus as Crypto Capital Inflows Return
With a potential ETF approval firmly on the radar for crypto market participants, capital inflows into the industry are being monitored closely.
For the first time in years, crypto markets are beginning to see new liquidity, with combined crypto market cap increasing by $600 billion since November 2022.
GBTC Discount Passes Two-Year Lows
The Grayscale Bitcoin Trust (GBTC) is fast approaching parity to net asset value (NAV). Now, its discount to NAV is just 10.35% — its smallest since August 2021. This reversal of fortune may be tied to a prospective ETF go-ahead.
Crypto Investors Stay Greedy
The Crypto Fear & Greed Index shows that greed is increasing among crypto investors, nearing levels last seen in November 2021.
“Hot Take: Investors Remain Bullish as Bitcoin Rides High“
Despite possible triggers for volatility and classic macro setups marking November’s third week, capital inflows into cryptocurrencies are attracting mainstream attention and increasing greed among investors. A potential ETF approval and GBTC discount reaching two-year lows show that investors remain bullish on Bitcoin’s prospects amidst macroeconomic uncertainty.
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