Bitcoin recently reached a new all-time high, but key indicators suggest the rally might still have room to grow.

The MVRV (Market Value to Realized Value) ratio shows Bitcoin isn’t yet overvalued; its price remains close to the cost basis for traders, indicating that the market isn’t overheated.

Bitcoin’s new all-time high doesn’t mean it’s overvalued relative to its cost basis.

The MVRV ratio shows $BTC is still far from peak levels.

The price is also close to the purchase cost of traders, indicating it’s not overheated.

This hints at a potential for further growth. pic.twitter.com/xeeDdipN9O

— CryptoQuant.com (@cryptoquant_com) November 6, 2024

This points to further potential growth, especially as short-term holders—often seen in bull markets—are entering the market in increasing numbers.

The number of short-term Bitcoin holders is increasing rapidly.

This pattern is often seen in bull markets, as new participants join in response to rising prices. pic.twitter.com/UnSxkV5wKc

— IntoTheBlock (@intotheblock) November 7, 2024

Binance’s open interest has also reached record levels, fueled by Bitcoin’s surge and an influx of capital into derivatives. Following the recent U.S. election, investor confidence has spiked, adding to the upward momentum. Typically, this type of spike in open interest either suggests sustained bullish sentiment or sets the stage for increased volatility.

Binance's open interest has hit an all-time high, fueled by Bitcoin's roaring rally and a surge of capital in its derivatives market.

The U.S. election results have sparked investor confidence, igniting this momentum.

Typically, these spikes in open interest signal sustained… pic.twitter.com/PSVreqF5jX

— Kyledoops (@kyledoops) November 7, 2024

Institutional players are also making a significant impact. Binance remains dominant in spot Bitcoin trading, holding 623,000 BTC, or 19.7% of total exchange reserves. Meanwhile, BlackRock’s spot ETF, IBIT, has solidified its position in the ETF space, holding 434,000 BTC, or 43.4% of spot ETF reserves, and becoming a major influence on the market.

Binance and BlackRock’s spot Bitcoin ETF (IBIT) are game-changers in the Bitcoin arena, driving adoption and setting trends.

Binance reigns supreme in spot Bitcoin trading, boasting 623,000 $BTC, which accounts for 19.7% of exchange reserves.

Meanwhile, BlackRock’s IBIT is the… pic.twitter.com/AMOFYRCXib

— Kyledoops (@kyledoops) November 7, 2024

In addition, whales are capitalizing on Bitcoin’s recent dip to accumulate more. In the past six hours alone, two large holders acquired nearly 1,897 BTC ($142.6 million) from Binance. One whale, under the address “bc1qay,” withdrew 1,225 BTC, now holding a total of 1,775 BTC with an unrealized profit of $2.56 million. Another new whale, “bc1qh8,” withdrew their first 671.74 BTC.

Two whales took chances to accumulate 1,897 $BTC ($142.6M) from #Binance in the last 6 hours as #Bitcoin slightly dipped from the new ATH!

1/ Whale “bc1qay” withdrew 1,225 $BTC ($92.2M) at $75,226 ~6 hours ago, now holding 1,775 $BTC ($133.4M) with a $2.56M unrealized profit.… pic.twitter.com/ySLuh6QFNI

— Spot On Chain (@spotonchain) November 7, 2024

Bitcoin spot ETFs are also seeing remarkable inflows, with $622 million in net inflows on November 6. Fidelity’s ETF, FBTC, brought in $309 million, while BlackRock’s IBIT hit a daily turnover record of $4.14 billion, signaling strong institutional demand in the Bitcoin market.

On November 6, Bitcoin spot ETFs had a total net inflow of $622 million. Fidelity ETF FBTC had an inflow of $309 million. Ethereum spot ETFs had a total net inflow of $52.2884 million. Bitcoin spot ETFs had a total daily turnover of $6.07 billion, the highest since March 15.…

— Wu Blockchain (@WuBlockchain) November 7, 2024

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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Image Source: alekskhmelev/123RF // Image Effects by Colorcinch

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