-- Experts from #Glassnode and Fasanara Digital assessed the dynamics and trends of the crypto market in the fourth quarter of 2024.
-- They noted the growing dominance of bitcoin($BTC
and the increased activity of institutions and the interest of the latter in RWA.

The market is on the verge of moving from "bullish enthusiasm" to "bullish euphoria", which is marked by the update of the bitcoin price maximum at $69,000. This is stated in the Glassnode and Fasanara Digital report on the institutional view of the crypto market for the fourth quarter of 2024.

Analysts pointed out that despite breaking through the $69,000 mark in March 2024, then investors were "too intensively" taking profits, so it took time to "cool the excitement."

Experts noted the recovery of the industry after the collapse of the #Ftx❓ cryptocurrency exchange. Since November 2022, bitcoin's capitalization has grown by 372% — at the time of writing, it is over $1.7 trillion, according to CoinMarketCap. Bitcoin's dominance has increased from 38.7% to almost 60% at the time of writing.

Ethereum's market share dropped 17% to 12.8% after the Merge update. The reason is a lack of capital inflows and retail interest, analysts said.
#SOLWatch

- Recent weeks witnessed heightened volatility in the market.
- Bitcoin surged towards the $50,000 mark amidst the turbulence.
- However, uncertainty and the looming possibility of sell-offs remain prevalent.
- Glassnode's MVRV ratio signals a concerning "high risk" landscape, hinting at potential profit-taking among long-term holders.
- Contrary data suggests that long-term investors might not be inclined to sell despite the risk.
- Grayscale holds a contrasting view, advocating for Bitcoin ETFs to lure in fresh investors and counterbalance miner selling post-halving.
Bitcoin is currently encountering resistance near the $49,000 mark but is inching closer to the significant $50,000 threshold amidst heightened volatility in recent weeks, as indicated by various metrics.
Market analysis suggests that Bitcoin may be on the cusp of entering the next phase of a bull market, supported by insights from Glassnode indicating increased attention and activity among long-term holders. However, this potential upward momentum is tempered by concerns of a looming sell-off and market uncertainty.
Glassnode's assessment, particularly through the MVRV ratio, suggests that Bitcoin is treading in a "high-risk" territory, indicating that long-term investors have accrued significant profits and could potentially initiate profit-taking actions. Despite this, indicators such as supply profitability and net unrealized profit/loss suggest that many investors are holding onto their positions, possibly in anticipation of further price appreciation.
Another factor influencing Bitcoin's future trajectory is the emergence of exchange-traded products (ETPs), particularly Bitcoin ETFs, which are anticipated to play a pivotal role in shaping the market dynamics, especially leading up to the upcoming halving event in April 2024.
The impending halving event, coupled with the influence of ETFs, has already begun to impact Bitcoin's price dynamics. Although the cryptocurrency recently flirted with the $50,000 mark, it faces resistance around the $48,969 level, with potential support seen around the 20-day EMA at approximately $44,557.
While Bitcoin appears poised for a potential breakout above $50,000, the possibility of a rejection at current levels necessitates caution, highlighting the inherent volatility and speculative nature of cryptocurrency investments. As always, investors are advised to conduct thorough research and exercise prudence in their financial decisions.

#Bitcoin #BTC #Glassnode #grayscale #cryptocurrency
$BTC