Bitcoin has enjoyed gains of 31% in November while being up more than 67% this quarter, making it the 18th largest asset in the world by market capitalization.
After breaking $16k, $17k, and $18k this week, today, we are keeping around the $18,000 level on the back of a $6 billion trading volume.
However, with these gains came the issues with crypto exchanges as they continue to go down whenever BTC makes higher than usual moves.
Coinbase has been one of them, whose CEO Brian Armstrong said they are working on adding additional capacity, in terms of servers and customer support “to deal with increased traffic.”
While Armstrong said, “Bull runs can be exciting and stressful,” the crypto community isn’t really satisfied as the exchanges had three years of bear and slow market to deal with the issues.
Now that the bull market is here, the situation will only get wilder and wilder — the market capitalization of BTC has already hit a new high. Unchained Capital stated,
“The bitcoin market cap is at a new all-time high, but the current state of coins held for the long-term is nearly identical to when the price was about $700 in 2016 before it went on its historic run to $20k in 2017.”
Bitcoin is climbing its way back to the top, trading above $17k for the first time since December 2017. So, is the crypto rally here to stay? pic.twitter.com/YKRq1UT13F
— CNBC’s Fast Money (@CNBCFastMoney) November 17, 2020
Already we are at price levels not seen since the euphoric December 2017, and the positive momentum continues to come for the leading digital asset as the BTC percentage supply on exchanges continues to decrease while the overall exchange flow balance remains dormant.
“This is good news for bulls, with little funding moving from offline wallets with the intent of making major trades,” noted Santiment.
Gradually as we continue to go higher, mainstream media is taking note as well. The latest has been from CCTV.
China’s official TV channel reporting on Bitcoin’s uptrend, which it said is driven by institutional funds. The ecosystem is far better than the last time during the current bull run.
“The Bitcoin ecosystem ranging from infrastructure and development to investment, has improved dramatically compared to 2017.”
Probably the most positive report about bitcoin from CCTV, it called bitcoin cryptocurrency, and says bitcoin’s ecosystem like network construction ， development environments ect are better than ever , and more institutions investors.
— Molly (@bigmagicdao) November 18, 2020
However, at the same time, we have been seeing the Chinese government cracking down on the exchange of cryptocurrencies. According to the local media, about 74% of the “Chinese miners are facing a major problem in paying electricity bills.”
This could also be why funding has been flat in this bull run, with open interest in USD increasing only marginally. Economist and crypto trader Alex Kruger shared his theory behind this,
“Chinese miners selling heavily reduced due to fiat onramp complications. They are instead shorting derivatives. Their selling pressure is equal in measure to buying pressure from levered longs. Hence why funding has remained flat in this bull run.”
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