“Bitcoin is resilient,” CZ, founder of Binance, declared on X.
The view is consistent with how bitcoin $BTC$79,821.88 and the wider crypto market have surged and held on to gains after the initial knee-jerk reaction lower in early Asian trading on Wednesday following reports of a Democratic sweep in the midterm elections.
However, as of writing, two things are missing, and both call for caution on the part of bulls.
First, there is little sign of fresh leverage entering the market, as evident from bitcoin’s futures open interest (OI), which has held largely unchanged at $53.40 billion, according to data source Coinglass. The same is true for many other coins, including SOL, HYPE, DOGE, NEAR and others, where OI has either held flat or declined amid the price rise.
This is a sign of a lack of fresh capital inflows, contrary to new inflows chasing upside when markets rally.
Secondly, spot-side indicators also remain tepid. The spot ETFs listed in the U.S. pulled in just $74 million in investor money on Wednesday. This follows outflows of over $400 million in the first two trading days and over $500 million last month, according to data source SoSoValue.
