Bitcoin is about to hit $ 70,000, AVAX is still hot

Bitcoin has now surpassed its previous high of $ 66,999 on October 20, 2021 and has climbed to a new ATH of $ 68,530. At the time of writing, BTC is trading at $ 68,262.

BTC price 4-hour chart | Source: Tradingview

Wilfred Daye, Head of Securifying Capital, commented:

“Inflation is one of the top concerns for investors right now, and the younger generation of investors often see cryptocurrencies as a better hedge than gold. While gold fell over the year, Bitcoin and ETH more than doubled. Retail investors have been instrumental in driving this change, and institutional investors tend to follow. ”

follow report CoinShares’ digital asset investment products have seen inflows for 12 consecutive weeks, with investments of $ 174 million in the week ended November 8th. Of that, 52.4% went into BTC-related products, bringing the cash flow since the start of the year to $ 6.466 billion. By comparison, all digital asset investment products got $ 6.7 billion in 2020.

Cash inflows on assets | Source: CoinShares

Less leverage in this bitcoin bull run

“While BTC’s rally is relatively steep and abrupt, it is only a confirmation of the extremely strong market structure that developed over the course of October. Crucially, the upward momentum does not appear to be due to leverage from seller liquidity at the moment,” said Mikkel Morch, ARK36 Operations & Risk Manager.

Mikkel’s view is further clarified by the graph below, which compares BTC price to previous levels of Open Interest (OI) with market capitalization and several metrics related to margin trading. The move is mainly based on spot demand and the market has less leverage compared to April 2021 and the first ATH hiatus in October.

On the flip side, the funding rate for perpetual contracts is now moving higher, but not as high as it was in October. Back then, speculators were excited when Bitcoin broke its ATH and definitely plunged long in fear of missing out. According to data from Laevitas.ch, the funding rate is currently 0.27% compared to 0.63% on October 21. It is a good sign when the price is rising and the funding rate is relatively stable.

Funding rate-weighted OI | Source: Laevitas

The number of bitcoins held on exchanges continues to decline

If the supply ratio on the stock exchange tends to decrease, this shows that investors are paying BTC into cold storage wallets for HODL over the long term. follow Glass knot, this indicator from BTC is currently below 13%.

Mikkel further emphasizes:

“When Bitcoin balances on the exchanges are at a 3-year low while the supply for long-term owners is at an all-time high, there is simply too little Bitcoin to meet demand. Under these circumstances, a price of $ 70,000 appears to be imminent. ”

Percentage of the BTC exchange balance | Source: Glassnode

avalanche still not “hot”

follow White paper, Avalanche is a powerful, scalable, customizable and secure blockchain platform. The platform aims to promote 3 use cases:

– Create application-specific blockchains, expand deployments with permission (private) and without permission (public).

– Create and launch highly scalable and decentralized applications (Dapps).

– Create digital assets of any complexity with user-defined rules, covenants and additions (smart assets).

The AVAX price soared after the Avalanche Foundation announced its plans to launch a $ 200 million ecosystem development fund known as Blizzard on Nov. 1, Bitcoin Magazine reported.

Emin Gün Sirer, Director of the Avalanche Foundation, said:

“In the past two months, Avalanche has seen incredible growth, with a record number of users, assets and applications joining the community. Blizzard will play a key role in driving further growth and cementing Avalanche’s position as the preferred destination for projects and pioneers of the next era with our space.

Compare Avalanche to other leading Layer 1 solutions | The source: AVAX

TVL, AVAX token allocation and bridge to Ethereum

Avalanche currently has a Total Locked Value (TVL) of over $ 10 billion on the platform, spread across 61 protocols, the DeFi Lama Monitor. Accordingly, Avalanche makes up 3.67% of the TVL of all Layer 1 sequences.

It is worth noting that the maximum supply of AVAX is 72,000,000 coins and there are currently only 220,286,577 coins in circulation. Accordingly, AVAX has a market cap of around $ 20 billion, but a fully diluted market cap is close to $ 65 billion. However, critics claim that corporate insiders and VCs were allotted 42% of the offer.

In contrast to Bitcoin, whose fees are passed on to the miners, with Avalanche all fees are burned, which increases the supply shortage. New AVAX tokens are minted to offset the amount burned due to transaction fees. Here is a chart comparing the AVAX release schedule to BTC:

The source: Avalabs

Avalanche caught a lot of attention when it launched an Ethereum bridge that will allow users to transfer assets between two chains. This bridge currently has a TVL of $ 5.1 billion, making it the third largest Ethereum bridge.

TVL Rating of Ethereum Bridges | Source: Dune Analytics

AVAX is currently trading at $ 89.87, with an annualized return of 2,519%.

AVAX 4-Hour Price Chart | Source: Tradingview

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