The crypto market is entering a state of “bullish euphoria”

The market is on the verge of transitioning from “bull enthusiasm” to “bullish euphoria”, which is marked by an update of the Bitcoin price maximum at $69,000. This is stated in report Glassnode and Fasanara Digital for an institutional look at the crypto market for Q4 2024.

Analysts pointed out that despite breaking through the $69,000 mark in March 2024, investors were taking profits “too intensively” at that time, 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 dominance has increased from 38.7% to almost 60% at the time of writing.

Ethereum’s market share dropped from 17% to 12.8% after the Merge update. The reason is a lack of capital inflow and retail interest, analysts said.

Experts noted a significant increase in institutional activity and its impact on the market. The main reason was the approval of the first spot Bitcoin ETFs in the United States. Assets under management of the funds reached $70.9 billion, which is almost 5% of the circulating supply of Bitcoin, the report notes.

Analysts also pointed to an increase in the volume of Bitcoin spot trading and open futures positions for the first cryptocurrency. The latter reached a historical high of $37.1 billion.

Additionally, according to the report, one of the most important trends in the latest market cycle has been the tokenization of real-world assets (RWA). The focus of such giants as BlackRock and Franklin Templeton is on the tokenization of treasury bonds, but interest in the possibilities of RWA continues to grow, experts noted.

Stay informed! Subscribe to World Stock Market in Telegram.