AVAX’s price action might benefit from BTC’s Open Interest climbing after GameStop’s treasury reserve update
Altcoin could see price gains on the back of an adoption spike
Bitcoin’s latest price action has sparked bullish technical and on-chain trends over the past week. In fact, at the time of writing, despite losses on the 24-hour front, BTC was still holding on to the $83,000-level. These figures can be expected to contribute to the crypto-market’s increasing adoption and positive institutional news.
That’s not all though. Especially since the latest institutional update involves GameStop announcing that it will now hold BTC as a reserve treasury asset.
Thanks to the same, its Open Interest climbed to a new all-time high of $61.17 billion – A sign of heightened market activity and a sustained bullish run.
Source: Coinglass
Institutional interest grows as crypto market reacts
GameStop’s move signals growing institutional confidence in Bitcoin, a trend that could further solidify BTC’s position as a reserve asset. Historically, institutional investments have driven both price and adoption, benefiting the broader crypto market.
In most cases, as Bitcoin strengthens, altcoins tend to follow, under the helping hand of rising on-chain metrics and improving sentiment.
AVAX gains from BTC’s market influence
At the time of writing, the correlation between Bitcoin and AVAX over the past three months stood at 0.76 – A sign that AVAX’s price could react positively to BTC’s momentum.
Lending more weight to the bullish bias, Avalanche network has seen greater adoption lately due to its low-cost transaction fees. This has further sparked traders and developers’ interests.
This can be evidenced by the hike in AVAX addresses and transactions, with the latter exceeding 200k over the last 6 days.
Source: DeFiLlama
Rising adoption underlines altcoin’s performance
As AVAX’s institutional adoption rises, the larger crypto market could benefit accordingly. AMBCrypto’s analysis of on-chain data revealed that altcoins, including AVAX, are now noting higher transaction volumes and stronger technical indicators.
Thanks to BTC’s rising adoption rate, AVAX’s long-term outlook remains generally bullish. If the trend continues, AVAX could gain more momentum, especially given its strong correlation with BTC and the altcoin’s increasing network activity.
As institutional adoption increases, AVAX could profit and test higher supply zones. The next in line will be the psychological level at around $30, especially if the momentum penetrates the press time resistance zone at around $20.
Source: TradingView
