The crypto world has had plenty of up-and-down rallies, and financial markets showing these swings are nothing new. However, the digital sector is an ever-changing landscape with many assets that have proven to be resistant to market volatility, one of which is Bitcoin.

According to market data, its consolidation level of $27,883 increased by 10%. According to chart readings, the crypto’s market value has surged due to an increase in its seven-day moving average utilised in daily volumes, which jumped from $10 billion in January to more than $30 billion in November. 

Crypto Market Trends 

It’s worth noting that the calm trading activity isn’t limited to the cryptocurrency sector. Charles Schwab, a brokerage firm in the United States, reported a decrease in daily average trades (DATs) between the first and third quarters. This decline is due to retail trading headwinds caused by variables such as U.S. Federal Reserve policy and the commencement of student loan payments.

Despite several macroeconomic headwinds, a rush of spot Bitcoin ETF modifications in mid-October drove BTC above $30,000 for the first time in two months, giving the market a sense of hope.

After U.S. Court of Appeals Circuit Judge Neomi Rao decided with Grayscale Investments in its action against the SEC over the Grayscale Bitcoin Trust on August 29, many significant institutions applied for ETFs. Grayscale won another triumph on October 14 when the SEC said it would not appeal its decision. Grayscale may have filed for a new spot in Bitcoin ETF on October 19 due to their decision not to appeal.

Despite multiple applicants, including BlackRock, Fidelity, ARK Invest, and 21Shares, which has filed for approval three times, the SEC has yet to approve a spot Bitcoin ETF.

Market Performance 

Given the Bitcoin bull run, higher spot trading volumes benefit other cryptocurrencies. One example is the increase in Ethereum trade activity. This is due to investors’ desire to diversify their portfolios as the first generation of Bitcoin has increased. Furthermore, given the closely related movements of the world’s two largest cryptos, increasing Bitcoin’s value will likely trigger a spillover to other cryptos.

The Crypto Fear & Greed Index is beginning to show symptoms of volatility after a period of slight fluctuation. The standard crypto mood indicator jumped into “greed” territory over the weekend, reaching 63/100, its highest score since July 12. The spike coincided with Bitcoin’s weekend attempts to break through $30,000, underlining the importance of that price level in traders’ eyes.

Exchange Dynamics 

Coinciding with Bitcoin price rises, BTC supply on exchanges remains below the monthly peak reached on September 4th. Since the two-month high, exchanges have lost nearly 70,000 BTC.

        BTC balance on exchanges. Source: Coinglass

The market interprets currencies leaving crypto exchanges as a bullish signal, considering that traders often withdraw their BTC when they want to keep it in self-custody for the long term. Long-term Bitcoin holders accounted for 76% of all BTC ownership on Oct. 19 for the first time in history. With Bitcoin continuing to depart exchanges, liquidations significantly impact prices. 

According to The Block data dashboard, crypto exchange volumes have increased as Bitcoin continues to close to $38,000. Regarding monthly exchange volume, Binance has continuously been among the leading exchanges.

The fact that the Bitcoin price is gaining momentum is helping to increase market mood. The Bitcoin Fear & Greed Index demonstrates that the market has switched from frightened to neutral, earning nine points in a week.

Conclusion

Regardless of the promising developments in the crypto industry and the rise of Bitcoin price, the digital currency market remains vulnerable to heightened volatility. This increase may also result in market value changes, resulting in unexpected losses for investors and ordinary traders. Furthermore, the market remains vulnerable to external variables such as news and macroeconomic events. This is also supported by shifting regulatory rules impacting the cryptocurrency market.