Ethereum ETF Approval, Bitcoin Consolidation Signal Strong Crypto Market: Glassnode

On-chain analytics platform Glassnode sees the Bitcoin BTC/USD consolidation near its all-time high and Ethereum‘s ETH/USD ETF-induced surge as promising signs of strength.

What Happened: In its latest newsletter titled “The Calm Bull,” the firm points to Bitcoin stabilizing just below its all-time high, igniting a renewed interest from long-term investors who began accumulating coins once again since December 2023.

On May 20, Bitcoin reached $71,000, marking a significant recovery from its early 2024 lows. The market dynamics show a pattern akin to the 2015-2017 bull market, emphasizing a spot-driven recovery.

Bitcoin recorded +3.3% (weekly), +7.4% (monthly), and +25.6% (quarterly) gains. Bitcoin ETFs saw a return to positive net flows ($242M/day) after a period of outflows in April, indicating renewed TradFi (traditional finance) demand. Long-term holders have resumed accumulation as prices are corrected and consolidated, creating a robust foundation for future price movements.

Ethereum has also displayed resilience, with corrections since the FTX lows being shallower compared to previous cycles. The SEC’s unexpected approval of Ethereum Spot ETFs has led to a +20% price rally, bolstering market confidence.

This development may act as a catalyst to improve the ETH/BTC ratio, which has lagged in performance relative to other crypto assets over the past two years. Ethereum spot ETFs’ approval fueled buy-side pressure, marking the first >20% price movement since late 2021.

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Why It Matters: According to the newsletter, Bitcoin’s current market phase resembles the early bull market stage, with about 93.4% of its supply held in profit, indicating a “Pre-Euphoria” phase. This phase often leads to investors taking profits, eventually transitioning into the “Euphoria” phase marked by consistent price discovery and ATHs.

Long-term holders (LTHs) showed a high sell pressure during Bitcoin’s climb to $73,000 in March but have since re-accumulated. The market remains robust, with significant buy-side pressure from ETFs possibly overshadowing the natural sell pressure from the recent halving.

What's Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on Nov. 19.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image created using artificial intelligence with Midjourney.