Originally published on: April 09, 2024
As the much-anticipated Bitcoin halving event approaches, driving expectations of a surge in BTC’s price, investors are showing heightened speculative interest in the crypto market. Glassnode’s recent report indicates that this surge in interest resembles levels seen during the 2021 bull run, potentially heralding a significant price movement.
Bitcoin’s price of $67,625 has been on a remarkable upward trend in 2024, reaching new all-time highs in March. The introduction of spot Bitcoin ETFs in the U.S. on Jan. 11 has led to a surge in BTC spot trading volumes, peaking in March. Glassnode highlights that the market has now entered a phase of euphoria, marked by a notable increase in profit-taking activities.
Since October 2023, data suggests that Bitcoin has been gaining bullish momentum, entering a period of high liquidity and volatility. Glassnode’s analysis shows that the strong demand in spot markets in 2024 mirrors the structure seen during the 2021 bull run.
The flow of Bitcoin in and out of exchanges has significantly increased since July 2023, with the average total inflows and outflows reaching $8.19 billion per day. This surge in liquidity, coupled with the impending Bitcoin supply halving, has created an aura of euphoria in the market, signaling the onset of a new bull market phase. Realized profits for Bitcoin also rose to 1.8% in March, surpassing the 2021 peak and indicating a period of profit-taking.
Glassnode predicts a fresh influx of capital into Bitcoin as profit-taking leads to increased demand from new investors. The rising share of wealth held by coins younger than 6 months in Realized Cap HODL Waves demonstrates that a new wave of investors is entering the market.
While the aggregate share of coins younger than 6 months has surged to 47%, up from 20% in early 2023, the chances of a sustained bullish rally in the coming weeks remain uncertain due to profit-taking activities as Bitcoin continues to trade above its 2021 all-time high.
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Please note that this article is for informational purposes only and does not constitute investment advice. Readers are encouraged to conduct their own research before making any investment decisions.