Kraken Intelligence, the exchange’s team of in-house specialists, determined that when it occurs to bitcoin (BTC) ‘s nearest future, similar to what was seen since March 2020, BTC whales gathering will drive further grasp in price in November. Hence, be ready for even greater volatility this month.
The analysts correlated the number of coins held in wallets with more than BTC 100 (USD 1.54m) and the ones with less and discovered that the former so-called ‘whales’ – “took advantage” of the October rally observed by the world’s number one crypto.
Bitcoin towered to USD 13,800 by the end of the past month, and this explains that, even if BTC 70,000 transmitted from the ‘whale’ wallets during October, the demand from wallets with less than BTC 100 “more than offset ‘whale’ profit-taking,” Kraken said. They proceeded that,
“Should demand hold strong as bitcoin matures into its current [USD] 13,000 – [USD] 15,000 range, existing and newfound demand could accelerate bitcoin’s appreciation into year-end if FOMO [fear of missing out] resurfaces and bitcoin begins climbing to a new all-time high.”
Though bitcoin had set an intra-month low of USD 10,384 during the beginning of the month, the super coin surged more than 28% to a 33-month high of USD 14,080 at the month’s end (before dropping to USD 13,809). The high return presented this the 8th consecutive year in which October exceeded September, known as bitcoin’s worst-performing month.
The researchers determined that last month was the second least volatile October on record – the volatility “fell short of the historical average” being six percentage points greater than September.
On the flip side, the month we’re currently in is the third-best yielding month when viewing at the median performance (+14%) and the greatest performing month on average, Kraken Intelligence stated. But they added that “excluding Nov. 2013’s anomalous +451% return, Nov’s pro forma average return of +5% is the third weakest month of the year.” Also, November’s average annualized volatility of 85% is the fourth most volatile month on record, behind April at 86%.
Therefore, given these two factors above, price and volatility can both be expected to climb in November. Kraken researchers said that,
“With bitcoin rallying to a 33-month high, setting a higher high after 3 years of downtrending price action, and tending to go parabolic after breaking out of a macro downtrend, an ascent to [USD] 20,000 appears likely in the months ahead.”
At 9:50 UTC, bitcoin is trading at nearly USD 15,400. It’s unchanged in the last 24 hours, and it appreciated 13% in a week, as well as almost 36% in a month.
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