Glassnode and Coinbase Institutional Release Q3 2024 Crypto Market Guide

Glassnode and Coinbase Institutional have unveiled their highly anticipated Q3 2024 'Guide to Crypto Markets'. This comprehensive report delves into the rapid increase in on-chain activity, the transformative impact of Exchange Traded Funds (ETFs), and the current market cycle.

Key Highlights

The report provides a detailed analysis of key developments in the crypto markets, including price performance, on-chain analytics, industry events, and derivatives data. Here are some crucial insights:

• Gauging the Market Cycle: Despite a pullback in Q2, data suggests that the current bull cycle, which began in late 2022, remains intact. Historical patterns indicate that such corrections are typical and align with past market behaviors.
• ETFs Have Altered the Landscape: Spot Bitcoin ETFs have amassed almost $50 billion in assets under management (AUM) within six months. These ETFs have attracted new investors and deepened market liquidity, positively impacting the broader crypto ecosystem.
• On-Chain Activity is Increasing Rapidly: Various metrics, such as total value locked (TVL), active addresses, and user base size, indicate a significant uptick in on-chain activity over the past six months. This surge is driven by diverse use cases, including lending, staking, and trading.

Key Q3 Trends

Several notable trends from the past quarter are highlighted in the report:

Investor Profitability Trends with MVRV

The MVRV Momentum tool tracks the average unrealized profit multiple held by investors (MVRV) relative to its 365-day moving average. When MVRV trades above this average, it typically signals robust uptrends and improving investor profitability.

In early July, the MVRV ratio found support near its 365-day moving average, suggesting the 2024 uptrend remains intact with positive investor profitability.

BTC Cycle Performance and Drawdowns

The current bull market, which began in late 2022, has seen Bitcoin prices increase by 400%. Following the collapse of FTX, Bitcoin experienced 18 months of steady price appreciation, reaching an all-time high (ATH) of $73k. This was followed by a range-bound phase and a -26% drawdown.

This downtrend is shallower compared to previous cycles, indicating a robust market structure and reduced volatility. The 2023-24 cycle mirrors the 2018-21 and 2015-17 cycles, providing valuable insights into cycle structure and duration.

BTC Spot ETF Balances

Spot Bitcoin ETFs have seen unprecedented success, with over $50 billion in AUM, making them the most successful ETF launch in history. ETF inflows have significantly outpaced new Bitcoin issuance, creating substantial demand and driving up trading volumes in both spot and derivatives markets.

BTC Futures Volume and Open Interest

The trading volume and open interest in Bitcoin futures have risen substantially. Traditional futures and perpetual futures both show increased participation and liquidity, reflecting the growing interest in Bitcoin derivatives.

For an in-depth exploration of these and other topics, the full version of the Q3 2024 'Guide to Crypto Markets' is available for download from Glassnode and Coinbase Institutional.

Download the full report here.

Glassnode remains committed to providing the highest quality data and analysis to support institutional investors in the world of digital assets. Visit the Insights blog for more reports on current trends in the crypto markets.