Bitcoin kicked off the week with a significant jump, rising 6.9% within just 8 hours.

The surge was partly fueled by short liquidations and the influx of Tether and stablecoins moving onto exchanges, which spurred a buying frenzy.

Crypto markets are experiencing heightened volatility, with Bitcoin swinging between $67.8K and $64.8K in just the past two and a half hours. Market sentiment remains bullish, with twice as many positive comments as bearish ones. Solana traders, in particular, are displaying notable optimism.

A growing divergence between Bitcoin’s supply and demand dynamics is becoming evident, as the market has remained range-bound for over seven months. The low trading volumes on both on-chain and futures markets, combined with a dominance of long-term HODLers, suggest we may be heading into a period of increased volatility.

Bitcoin’s 200-day Simple Moving Average (SMA), currently at $63,336, sits within a key demand zone between $61,770 and $63,728. In this zone, roughly 1.1 million BTC were bought by 2.5 million addresses, according to data from IntoTheBlock.

Bitcoin Whales And Institutional Interest 

Meanwhile, Bitcoin’s open interest across exchanges has hit a record high of $19.75 billion. Such a spike in open interest often signals upcoming major price movements, as more capital is now in play. Another critical factor is the strong correlation between whale holdings and Bitcoin’s price action.

Interestingly, while Bitcoin rallied from $54,000 to $66,000 over the past week, large holders offloaded or redistributed more than 70,000 BTC, valued at about $4.2 billion. Additionally, Bitcoin spot ETFs saw a net inflow of $556 million on October 14, with significant contributions from Fidelity’s FBTC and Bitwise’s BITB.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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