According to a report by Glassnode, as the Bitcoin halving event approaches, investors’ speculative interest in the crypto market is reaching levels seen during the 2021 bull run. This surge in interest raises the likelihood of a significant price movement. The market is currently experiencing euphoria, with Bitcoin’s price reaching new all-time highs in March. The introduction of spot Bitcoin ETFs in the US has led to a substantial increase in spot trading volume. Glassnode has observed a transition into a euphoric phase, with profit-taking also on the rise. Data suggests that Bitcoin’s bullish momentum has been building since October 2023, leading to increased liquidity and volatility. The demand in spot markets is supporting BTC’s year-to-date performance, resembling the structure seen during the 2021 bull run. Additionally, Bitcoin’s flow in and out of exchanges has significantly increased since July 2023, surpassing the levels seen in the previous bull market peak. With high liquidity and the impending halving event, the market is enveloped in euphoria, signaling the presence of a bull market. The realized profit of Bitcoin has also risen to 1.8% in March, reclaiming the peak seen in 2021. This suggests that a portion of the market cap has been locked in as profit over a 7-day period. Glassnode anticipates that new capital will flow into Bitcoin as profit-taking is met with demand from buyers. This influx of capital indicates the entry of a new wave of investors into the market. The share of wealth held by coins younger than 6 months has surged since early 2023, reaching 47% from 20% on January 1, 2023. This metric had previously reached between 84% and 95% during previous bull markets. However, the chances of a sustained bullish rally in the coming weeks are low due to profit-taking as Bitcoin trades above its 2021 all-time high. It is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.
Glassnode data confirms crypto markets are in an 'euphoric' phase, as Bitcoin spot volumes surge.