Will “Upvember” prove the crypto market has reached a new level of stability?
Excitement continues to brew in the crypto universe as traders are looking for a November that could be as positive as October. Just a few days into the new month, which some traders are dubbing “Upvember,” Bitcoin, Ethereum and altcoins are lighting up the charts with growing positivity as moves by mainstream institutions signal mass adoption may already be here.
“As Bitcoin consolidates after the recent all-time-high, constructive developments in both derivatives, and spot markets indicate that further upside is the most probable outcome,” on-chain analysts Glassnode reports in its weekly Insights. “The current levels of spent profit taking on-chain are mild considering the all-time high was broken ten days ago and resemble the activity of an early bull market.”
While Bitcoin maintained a relatively steady price, Ethereum is having a moment as it reached an all-time-high in late October. The number two cryptocurrency is on its way to 8 consecutive quarters in the green, Coinbase Institutional reports. Some altcoins are being buoyed as well, as market capitalization for all crypto sits at an all-time-high of more than $2.7 Trillion.
“The bullish move in BTC is mostly the result of the traders’ confidence in the market strengthening as historical data shows the month of November and December to be high performing periods for Bitcoin price,” Coindesk reports.
Moves toward crypto acceptance by mainstream financial entities is contributing to the optimism. Two Bitcoin exchange traded funds (ETFs) went live in the U.S. in October, and while both do not invest directly in bitcoin but focus on related businesses, the move was seen as a breakthrough for digital currencies.
“A bitcoin ETF helps ratify cryptos relevancy in today’s economy,” Chris Kline, COO and co-founder of Bitcoin IRA, told Kiplinger. “It opens up a potential new batch of buyers who are more comfortable with ETF’s and makes digital assets more appealing. It brings in a new class of investors, who are more comfortable in traditional finance, into the fold of cryptocurrencies. It is an exclamation point on the adoption of digital assets that we’ve seen in 2021.”
Australia also announced last week that it would soon allow for crypto ETFs as well. The land down under gave digital currencies another shot in the arm, as one of its largest banks — Commonwealth Bank of Australia — said it would soon allow its customers to buy, sell and hold Bitcoin through its app.
“Research from CBA has found a large number of its customers want to access crypto assets as an investment class and are already buying, selling and holding crypto assets through a variety of crypto exchanges,” the bank said in a news release.
“The emergence and growing demand for digital currencies from customers creates both challenges and opportunities for the financial services sector, which has seen a significant number of new players and business models innovating in this area,” CBA CEO Matt Comyn said in the announcement.
“We believe we can play an important role in crypto to address what’s clearly a growing customer need and provide capability, security and confidence in a crypto trading platform.”
Another sign that crypto has officially arrived is, literally, a sign.
“We’re partnering @CoinDesk to share live #Bitcoin price quotes on hundreds of street corners across New York City,” Grayscale tweeted. “The signs are new, but we’ve been working to make investing in digital assets easy and accessible since 2013.”
While the month is still young, hope for an Upvember is fueling the crypto market. Supply continues to be an issue, as BTC hodlers and whales hold their coins close. Institutional investors are also snatching up the coin, which has a limited supply baked into its code. While charts and analysis abound on social media, who knows where the market — historically known for its volatility — will go. This month could make — or break — a new crypto winning streak.
Joyce Pavia Hanson