- Bitcoin spiked Tuesday afternoon nearly 3% to $35,500 in a short squeeze, while solana led altcoin gains.
- Widening crypto rally lifted total cryptocurrency market cap to $1.3 trillion, its highest since May 2022.
- K33 analyst recommends "aggressive accumulation of bitcoin" for November.
Bitcoin (BTC) jumped to $35,500 Tuesday as the widening altcoin rally and risk-on sentiment in traditional markets lifted the total cryptocurrency market's value to a 16-month high.
A quiet and modestly lower session was upended mid-afternoon as bitcoin quickly spiked nearly 3% from $34,600, with some suggesting a short squeeze in the derivatives markets as the reason. At press time, bitcoin was trading at $35,600, up nearly 2% over the past 24 hours.
The CoinDesk Market Index (CMI), a basket of 189 cryptocurrencies, was up 1%.
Increasing risk-on sentiment on traditional markets also supported the digital asset space. Safe haven asset gold sank to its lowest price in three weeks, while West Texas Intermediate crude oil (WTI) plummeted 4% to its weakest level since July. The Nasdaq 100 advanced 1.1%, now on a seven-day winning streak.
What's next for bitcoin (BTC)?
As bitcoin's price stays increasingly compressed in the range between $34,000 and $36,000, capital rotation into altcoins is creating a "mini altcoin season," a K33 Research report noted.
It's a typical behavior on the crypto market that traders take profits after a sizable BTC rally and put the proceedings in smaller, riskier tokens.
At the same time, K33 pointed out, accelerating inflows into bitcoin-related funds provides support for BTC's price.
"It’s hard, nearly impossible, not to remain bullish," K33 senior analyst Vetle Lunde said. "An ETF verdict is nine weeks away, and institutional traders provide the only significant heater witnessed in the derivatives market."
"November represents yet another solid month for aggressive accumulation of bitcoin, with an extended plan to distribute, reduce exposure, and reallocate to altcoins once the cat’s out of the bag," Lunde added.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.