Markets
Ethereum ETF Approved, Sign of Bitcoin Consolidation Strong Crypto Market: Glassnode
On-chain analytics platform Glassnode see the Bitcoin (CRYPTO: Bitcoin) consolidation near its all-time high and Ethereum‘s (CRYPTO: ET) The ETF-induced rally looks promising signs of strength.
What happened: In his latest newsletter entitled “The calm bull“, the firm aims for Bitcoin to stabilize just below its all-time high, sparking renewed interest from long-term investors who have begun accumulating coins once again since December 2023.
On May 20, Bitcoin reached $71,000, marking a significant recovery from early 2024 lows. Market dynamics show a similar pattern to the 2015-2017 bull market, underscoring a spot-led recovery.
Bitcoin posted gains of +3.3% (weekly), +7.4% (monthly), and +25.6% (quarterly). Bitcoin ETFs saw a return to positive net flows ($242 million per 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 FTX lows being shallower than previous cycles. The SEC’s unexpected approval of Ethereum Spot ETFs led to a +20% price rally, boosting market confidence.
This development could serve as a catalyst to improve the ETH/BTC ratio, which has lagged behind other crypto assets in terms of performance for the past two years. The approval of Ethereum spot ETFs fueled buy-side pressure, marking the first price move above 20% since late 2021.
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Because matter: According to the newsletter, Bitcoin’s current market phase resembles the early bull market phase, with approximately 93.4% of its supply held in profit, indicating a “Pre-Euphoria” phase. This phase often leads investors to make profits, then move into the “Euphoria” phase characterized by constant price discovery and ATH.
Long-term (LTH) holders showed high selling pressure during Bitcoin’s climb to $73,000 in March, but have since piled in again. The market remains robust, with significant buying pressure from ETFs potentially overshadowing the natural selling pressure resulting from the recent halving.
What’s next: The influence of Bitcoin as an institutional asset class it is expected to be explored in depth at Benzinga’s next event The future of digital assets event on November 19th.
This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.
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