- Bitcoin experiences healthy consolidation following a red-hot start to October but continues to exhibit strong underlying fundamentals.
- BTC open interest has increased dramatically in recent weeks, but data shows that the majority of futures are cash-margined, which may point to a more robust derivatives market as compared to prior bull runs.
- Historical trends in Market Value to Realized Value ratio and Market Cap to Thermocap multiples suggest that despite the leasing asset’s recent impressive performance, there is still room for price to run.
- Historically, decisive decreases in Bitcoin dominance indicate an increased appetite for risk amongst market participants, thus making it a helpful metric for managing crypto allocations.
- Bottom Line – We continue to lean into our thesis that Bitcoin will make a run at all-time highs in Q4 and ultimately reach our $100,000 price target by year-end. Therefore, we are buying into any near-term weakness. We also reiterate our bullish view on Ethereum as we still expect the leading smart contract platform to benefit from favorable tailwinds and reach our price target of $10,000.
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