Markets
Ethereum ETF Approval, Bitcoin Consolidation Signal Strong Crypto Market: Glassnode
On-chain analytics platform Glassnode see the Bitcoin (CRYPTO: Bitcoin) consolidation close to its historical maximum and Ethereum‘s (CRYPTO: ETH) ETF-Induced Surge as Promising signs of strength.
What happened: In your latest newsletter titled “The Calm Bull”, the company points to Bitcoin stabilizing just below its all-time high, sparking renewed interest from long-term investors who have started accumulating coins once again since December 2023.
On May 20, Bitcoin reached $71,000, marking a significant recovery from the early 2024 lows. Market dynamics show a similar pattern to the 2015-2017 bull market, emphasizing a driven recovery in sight.
Bitcoin recorded gains of +3.3% (weekly), +7.4% (monthly) and +25.6% (quarterly). Bitcoin ETFs have seen a return to positive net flows ($242 million/day) after a period of outflows in April, indicating renewed demand for TradFi (traditional finance). Long-term holders have resumed accumulation as prices correct and consolidate, creating a solid foundation for future price movements.
Ethereum has also shown resilience, with corrections since the FTX lows being more shallow compared to previous cycles. The unexpected SEC approval of Ethereum Spot ETFs led to a +20% price rally, reinforcing market confidence.
This development could act as a catalyst to improve the ETH/BTC ratio, which has underperformed other crypto assets over the past two years. The approval of Ethereum spot ETFs has fueled buy-side pressure, marking the first price movement of >20% since late 2021.
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Why does this matter: According to the newsletter, the current phase of the Bitcoin market resembles the initial stage of the bull market, with around 93.4% of its supply retained in profit, indicating a “pre-euphoria” phase. This phase often leads investors to take profits, eventually transitioning into the “Euphoria” phase, marked by consistent price discovery and ATHs.
Long-term holders (LTHs) showed high selling pressure during Bitcoin’s rise to $73,000 in March, but have since returned to accumulation. The market remains robust, with significant buy-side pressure from ETFs, possibly overshadowing the natural selling pressure resulting from the recent halving.
What is the next: The influence of Bitcoin as an institutional asset class expected to be thoroughly explored at Benzinga’s next event Future of digital assets event on November 19th.
This content was produced in part with the help of AI tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.
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