Investors’ speculative interest in the cryptocurrency market has surged to similar levels of the 2021 bull run, according to a recent report by Glassnode. This comes as the highly anticipated Bitcoin halving event draws near, growing enthusiasm of a significant price movement in the near future.
Data analysis indicates that Bitcoin‘s bullish momentum has been building since October 2023, leading to a period of high liquidity and volatility. Glassnode highlights that the strong demand in spot markets has supported Bitcoin’s year-to-date performance, mirroring a similar structure observed during the 2021 bull run.
Bitcoin gained 62% so far in 2024, with its price currently at $68,748. BTC reached new all-time highs of $73,750.07 on March 14. The introduction of spot Bitcoin ETFs in the United States on January 11 has contributed to a surge in BTC spot trading volume, peaking in March. Glassnode’s report suggests that the market has now entered a state of euphoria, accompanied by a notable increase in profit-taking activities.
Furthermore, the flow of Bitcoin in and out of exchanges has seen a significant increase since July 2023. Glassnode’s data reveals that the average daily total inflows and outflows from exchanges presently stand at $8.19 billion, surpassing the peak of the 2021 bull market.