Remarkably, Bitcoin surged to $71,000 on May 20 as it experienced a severe correction of 20.3%, the deepest one since the FTX crash. This recovery leaves Bitcoin very close to its all-time high (ATH), which has led many to draw parallels with the bull market of 2015-17 as evidenced from “The Calm Bull” report by Glassnode.
The report indicates that there is a similarity between correction observed recently in Bitcoin prices and subsequent rally with what happened during 2015 – 2017 when Bitcoin rose rapidly without derivative instruments. From this comparison, it can be inferred that at present, spot trade predominates in the market with support from new US Spot ETFs launched and drawing massive investments.
Long-term investors have started re-accumulating Bitcoin for the first time since December 2023, reinforcing confidence in the market. Meanwhile, Ethereum has experienced its first significant price surge in years, driven by the approval of Ethereum spot ETFs in the US. This approval triggered a 20% increase in ETH’s price, underscoring the impact of regulatory developments on the crypto market.
Analysis of Bitcoin and Ethereum’s Rolling Performance
Glassnode’s analysis of Bitcoin’s rolling performance over weekly, monthly, and quarterly timeframes reveals strong performance, with gains of 3.3%, 7.4%, and 25.6%, respectively. Despite this, the number of trading days with exceptional performance in the past quarter has been lower than in previous cycles, indicating a more measured market.
On the contrary, Ethereum’s performance metrics have shown a dramatic impact for the first time since late 2021 as a result of ETF approvals. It is possible that early signs of a more promising trajectory may appear when considering ETH/BTC pair trades.
From net outflows in April to remarkable net inflows of $242 million per day last week, the Bitcoin ETF market witnessed a significant turnaround. This influx highlights the substantial impact of ETFs on market dynamics and it is eight times bigger than miners’ natural daily sell pressure.
When Bitcoin approaches new ATHs, there are up to 93.4% of circulating supply in profit which suggests that we are now entering the Pre-Euphoria phase historically associated with long-term holders taking profits. This period will be followed by Euphoria phase where around 90% can mean anything between 6-12 months in terms of profitability among investors.
Related Reading | Ethereum’s Hidden Secrets: Why Whale Movements Aren’t Everything
Remarkably, Bitcoin surged to $71,000 on May 20 as it experienced a severe correction of 20.3%, the deepest one since the FTX crash. This recovery leaves Bitcoin very close to its all-time high (ATH), which has led many to draw parallels with the bull market of 2015-17 as evidenced from “The Calm Bull” report by Glassnode.
The report indicates that there is a similarity between correction observed recently in Bitcoin prices and subsequent rally with what happened during 2015 – 2017 when Bitcoin rose rapidly without derivative instruments. From this comparison, it can be inferred that at present, spot trade predominates in the market with support from new US Spot ETFs launched and drawing massive investments.
Long-term investors have started re-accumulating Bitcoin for the first time since December 2023, reinforcing confidence in the market. Meanwhile, Ethereum has experienced its first significant price surge in years, driven by the approval of Ethereum spot ETFs in the US. This approval triggered a 20% increase in ETH’s price, underscoring the impact of regulatory developments on the crypto market.
Analysis of Bitcoin and Ethereum’s Rolling Performance
Glassnode’s analysis of Bitcoin’s rolling performance over weekly, monthly, and quarterly timeframes reveals strong performance, with gains of 3.3%, 7.4%, and 25.6%, respectively. Despite this, the number of trading days with exceptional performance in the past quarter has been lower than in previous cycles, indicating a more measured market.
On the contrary, Ethereum’s performance metrics have shown a dramatic impact for the first time since late 2021 as a result of ETF approvals. It is possible that early signs of a more promising trajectory may appear when considering ETH/BTC pair trades.
From net outflows in April to remarkable net inflows of $242 million per day last week, the Bitcoin ETF market witnessed a significant turnaround. This influx highlights the substantial impact of ETFs on market dynamics and it is eight times bigger than miners’ natural daily sell pressure.
When Bitcoin approaches new ATHs, there are up to 93.4% of circulating supply in profit which suggests that we are now entering the Pre-Euphoria phase historically associated with long-term holders taking profits. This period will be followed by Euphoria phase where around 90% can mean anything between 6-12 months in terms of profitability among investors.
Related Reading | Ethereum’s Hidden Secrets: Why Whale Movements Aren’t Everything
