The Single-Day Gain for Bitcoin Was the Largest Since October, and Market-Neutral Bets Yielded Three Times the Amount of US Treasury Notes

The Single-Day Gain for Bitcoin Was the Largest Since October, and Market-Neutral Bets Yielded Three Times the Amount of US Treasury Notes

On Wednesday, the value of Bitcoin increased by 9.5%, continuing its upward trend for the second day in a row for the cryptocurrency.

Experts forecast that in the coming months, there will be a consistent upward trend towards the territory of six-figure earnings.

Glassnode Platform Predicts Significant Bitcoin Growth

As reported by Glassnode, the market-neutral strategy for Bitcoin cash and carry offers a yield of 14% on an annualized basis.

According to the charting platform TradingView, Bitcoin (BTC) experienced a significant increase of 9.5% on Wednesday, marking its most considerable one-day percentage rise since October 23. This increase was the largest on Wednesday since October 23.

On a number of different exchanges, prices reached a new all-time high of $64,000, marking the highest level seen since November 2021. It is commonly believed that Wall Street’s acceptance of bitcoin exchange-traded funds (ETFs) based on spot prices is responsible for the significant surge that occurred from the low point on Monday, which was approximately $51,500. Over the past week, the CoinDesk 20 Index, which is a more comprehensive measure of the market, has significantly increased by more than ten percent.

trading robot

An overwhelming majority of people are of the opinion that the upward trend will continue in the months to come, which will cause prices to reach six figures.

Top 5 Cryptocurrencies Today:

Name Price24H (%)
Bitcoin (BTC)
Ethereum (ETH)
Tether (USDT)
Cardano (ADA)

>> Invest In Cryptocurrencies Now!

“According to analysts at crypto exchange Bitfinex, our examination predicts a cautious price target of $100,000-$120,000 by Q4 2024, with the peak of the cycle expected to occur in 2025 in relation to the overall cryptocurrency market capitalization.”

“The ETFs have brought about ‘passive demand,’ indicating that investors are showing interest regardless of price.” Analysts mentioned that bitcoin is viewed more as a stable store of value rather than a fluctuating asset for trading, a trend that has been ongoing for years prior to the ETFs being introduced.

Peter Brandt Continues to Believe in Bitcoin and Makes His Arguments

Earlier this week, Peter Brandt, an expert in technical analysis, predicted that Bitcoin might reach a high of $200,000 by September 2025.

These predictions are bound to delight traders who focus on market direction. However, traders who do not have a specific direction in mind should be fine, as the cash and carry arbitrage currently offers a return that is three times higher than the yield on the 10-year U.S. Treasury note, also known as the risk-free rate.

trading robot

When engaging in cash and carry arbitrage, one takes a market-neutral approach with the intention of profiting from price differences between the spot market and the futures market. When futures are trading higher than spot prices, the arbitrageur will simultaneously hold a position that is long in the spot market and a short position in the next.

This is because futures market prices are higher than spot prices. As the date of future expiration draws nearer, the additional cost decreases. When the settlement day arrives, futures prices align with spot prices, which creates an opportunity for arbitrageurs to make a profit with a low level of risk.

According to information provided by Glassnode, a company that specializes in blockchain analytics, the Bitcoin cash and carry strategy, which typically involves the purchase of three-month futures, results in a return of more than 14%.

This yield is 2.8 times higher than the yield on the 1-year Treasury, which is 5%, and it is three times higher than the yield on the 10-year Treasury, which is 4.27%.

Since the return is relatively higher, additional funds may be invested in the cryptocurrency market.

“The return offered in futures markets is expected to begin luring market creators back into the digital asset sector, enhancing market liquidity,” Glassnode stated in the weekly newsletter.

Disclaimer: specializes in crafting premium content tailored for businesses in the cryptocurrency sector. We have been instrumental in elevating the brand presence of a multitude of companies. Our clientele consistently expresses satisfaction with our offerings. For inquiries, feel free to reach out to us. Given the volatile nature of cryptocurrencies and digital tokens, we encourage potential investors to undertake comprehensive research prior to making investment choices. It’s important to note that some content featured on our platform is contributed by guest writers or is sponsored, and as such, does not necessarily represent the perspectives of aCryptoFinance. We disclaim liability for the content’s accuracy, quality, advertising, products, or any other elements displayed on the website.