Markets
Ethereum ETF Approval, Bitcoin Consolidation Signals Strong Crypto Market: Glassnode
On-Chain Analytics Platform Glass knot see him Bitcoin (CRYPTO: BTC) consolidation close to its historic high and Ethereum(CRYPTO: ETH) The rise driven by ETFs is promising signs of strength.
What happened: In its latest newsletter entitled “The calm bull“, the company highlights that Bitcoin is stabilizing just below its all-time high, sparking renewed interest from long-term investors who have started accumulating coins again since December 2023.
On May 20, Bitcoin reached $71,000, marking a significant recovery from its early 2024 lows. Market dynamics show a similar trend to the 2015-2017 bull market, emphasizing a recovery driven by the spot.
Bitcoin recorded gains of +3.3% (weekly), +7.4% (monthly), and +25.6% (quarterly). Bitcoin ETFs saw 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 being shallower from the FTX lows compared to previous cycles. The SEC’s unexpected approval of Ethereum Spot ETFs led to a +20% price rise, boosting market confidence.
This development could serve as a catalyst to improve the ETH/BTC ratio, which has been lagging other crypto assets over the past two years. The approval of Ethereum spot ETFs fueled buying pressure, marking the first >20% price movement since late 2021.
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Why is this important: According to the newsletter, the current phase of the Bitcoin market resembles the beginning of the bull market, with approximately 93.4% of its supply held in profit, indicating a “pre-euphoria” phase. This phase often leads investors to take profits, eventually moving into the “euphoria” phase marked by constant price discovery and ATHs.
Long-term holders (LTH) showed strong selling pressure during Bitcoin’s rise to $73,000 in March, but have since reaccumulated. The market remains robust, with significant buying pressure from ETFs that could eclipse the natural selling pressure resulting from the recent halving.
And after: The influence of Bitcoin as an institutional asset class should be explored in depth in the next The future of digital assets event on November 19.
This content was partially produced using AI tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.
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