BTC’s Strong Surge: How to Use Accumulator Products to Strategically Build Positions | Weekly Market Insights Recap

During the official YouTube livestream at 8 PM on November 13th, Daniel Yu, Head of Asset Management at Matrixport, gave an in-depth analysis of market movements from last week (November 6th — November 12th). Daniel elaborated on the reasons behind BTC’s significant price surge driven by market forces, discussed the impact of Trump’s election victory and policy expectations on the crypto market, the latest changes in the options market, and the dominant role of institutional funds. He also offered investors robust investment directions and strategies in the current high-volatility market environment.

Key Takeaways from the Livestream

From November 6th to November 12th, BTC experienced a strong price surge, breaking through $90,000 by November 14th, nearing the critical psychological threshold of $100,000. This surge was mainly driven by the nearing the global crypto adoption threshold and the policy benefits following Trump’s victory. With the massive influx of institutional and retail funds, a strong dollar and increasing uncertainty around inflation, investors increasingly viewed BTC as “digital gold” to hedge against traditional asset volatility, driving significant upward movement in altcoins.

Analysis of Market Volatility Causes

Growing Market Sentiment Driven by News

Recently, the market has experienced a significant surge, particularly over the past weekend with a quick “panic buy.” BTC briefly broke through $90,000 on some exchanges, showing strong investor interest in the crypto market. This surge was driven by news, mainly including policy expectations after the election, especially the market optimism following Trump’s victory. He proposed incorporating BTC into the “national strategic asset” program, further boosting market confidence and leading to massive institutional and retail fund inflows.

Policy Benefits: BTC’s National Strategic Positioning

Post Trump’s victory, his proposal of BTC as a “national strategic asset” gave BTC a higher status in the US financial strategy, with expectations that BTC will gradually enjoy a similar strategic reserve status as gold. Trump’s stance on supporting crypto market development has boosted market sentiment, with growing expectations of a more relaxed regulatory environment in the future, further supporting BTC’s price rise.

Impact on Altcoins

Trump’s interest in other crypto assets like DOGE and his appointment of Musk as the head of the Department of Government Efficiency also boosted market expectations for altcoins. The market believes that in the backdrop of relaxed policies, altcoins may gain more attention, with the market value of tokens like DOGE possibly increasing further. Despite the active performance of the altcoin market, current institutional influence has increased, and investors can maintain a high allocation in mainstream assets ( like BTC ) to handle potential market volatility.

Options Market and Institutional Behavior in the Current Environment

Institutional and Retail Investors Drive Market Price Surge

The dual participation of institutional investors and retail investors has become the main driver of price rises. The net inflow of ETF, USDT, and USDC has significantly increased, indicating the coordinated inflow of funds within and outside the market. Wall Street and various funds are also actively buying crypto assets, enhancing market stability and upward momentum, forming a market rise synergy.

Adoption Threshold and Institutional Holdings

The global crypto adoption rate has reached 7.51%, nearing the 8% adoption threshold. With the adoption rate expected to rise, BTC demand is expected to grow further. Many institutions, including pension funds in the US and UK, have included BTC into their asset allocations. This adoption rate dynamic will push BTC demand from individual investors to larger scale enterprises and institutions, further solidifying BTC as a long-term investment and hedging asset.

Investment Directions to Consider

Opportunities in the increasing Institutional Crypto Asset Adoption

As institutions increase their allocation of crypto assets, investors should closely monitor this adoption rate dynamic. The massive institutional influx not only provides long-term market stability but also increases BTC’s security as an asset. Investors can gradually increase their crypto asset allocation to embrace potential adoption rate growth and enjoy the market expansion benefits brought by institutional funds.

Accumulator Products — Flexible Discounted Accumulation Tools

Matrixport’s accumulator products are suitable for gradually accumulating mainstream assets like BTC in a volatile market. These products allow investors to accumulate positions gradually at discounted prices, smooth the accumulation cost, and reduce the risk of one-time input. Over the product period, investors can regularly purchase underlying assets at a fixed discounted price, meeting their needs for discounted position building.

In the current upward market, investors can use a gradual accumulation strategy through accumulator products to flexibly increase positions in a volatile market, optimize purchase costs and reduce the risk of accumulating positions at one time.

With the acceleration in the rise of the adoption rate and the expectation of the crypto-friendly policy, investors can use accumulator products in combination with other structured products.

Conclusion

This week, the market showed a positive upward trend in the backdrop of policy benefits, institutional participation, and accelerated adoption. Trump’s policy statement increased BTC’s market attractiveness, while the expectation of relaxed policies also boosted the rise of other crypto assets like DOGE. Matrixport’s accumulator products provide stable growth investment options, enabling investors to accumulate positions gradually in a high-volatility market.

Check out the recording of our YouTube livestream for more details: https://youtube.com/live/Elh_Ay9wd3c?feature=share

About Matrixport Weekly Market Insight

[Matrixport Weekly Market Insight] is an interactive knowledge-sharing column newly launched by Matrixport, and will be livestreamed each week on the Matrixport official YouTube Channel. We will invite industry-leading product managers, top analysts, and KOLs to discuss investment strategies under different market situations and share their investment experiences.

Subscribe to the Matrixport YouTube Channel to stay tuned on the latest market developments.

Disclaimer: The above content is for informational purposes and reference only. The content does not constitute investment advice. Digital asset transactions can be precarious and volatile. Investment decisions should be made after carefully considering individual circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.

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