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The crypto market experiences heightened speculation in anticipation of the Bitcoin halving event, echoing the fervor of the 2021 bull run, according to a Glassnode report.
Bitcoin (BTC) continues its impressive performance in 2024, reaching new highs fueled by surging spot trading volumes post the introduction of spot Bitcoin ETFs in the U.S. in January.
Glassnode identifies a shift to a euphoric market phase, accompanied by notable profit-taking, with Bitcoin’s bullish momentum building since October 2023 amidst increased liquidity and volatility.
Strong demand in spot markets mirrors patterns from the 2021 bull market, while exchange flows surge since July 2023, averaging $8.19 billion daily, exceeding 2021 peak levels.
Glassnode forecasts further capital influx into Bitcoin, driven by demand from new investors, evidenced by the rising share of wealth held by coins younger than 6 months.
However, sustained rally prospects are tempered by profit-taking as Bitcoin surpasses its 2021 all-time high.
Despite this, the relatively balanced distribution of wealth between long-term holders and new investors suggests the euphoric phase is in its early stages, warranting close monitoring.
Overall, the surge in investor capital and heightened market activity signal a euphoric phase for the crypto market, positioning Bitcoin for further price movements amidst heightened speculation and demand.