Analysis from Glassnode reveals the Crypto market, spearheaded by Bitcoin (BTC) and Ethereum (ETH), experienced recovery in 2023 after enduring the hardships of the crypto winter. Prices of Bitcoin have more than doubled in value since the beginning of the year, while Ethereum amassed gains of over 50%, according to CoinMarketCap.
Amidst global uncertainty triggered by conflicts in the Middle East, the crypto market surged ahead, outpacing traditional market bellwethers. According to a report by on-chain analytics firm Glassnode, Bitcoin’s growth outpaced gold by 93%, and Ethereum appreciated by nearly 40% compared to the most popular store of value.
The market momentum has accelerated notably since mid-October, fueled by optimism surrounding the potential approval of several spot Bitcoin exchange-traded fund (ETF) applications. This surge attracted investors, prompting a flow of funds from traditional finance (TradFi) to the crypto realm.
Ethereum breached the $1,800 barrier, indicating a 22% profit above its Realized Price of $1,475. This enticing signal bolstered investor confidence, even though the MVRV Ratio suggested a negative market. Despite occasional volatility, the crypto market’s advantages over traditional assets continued to attract capital inflows.
While altcoins experienced significant gains, Bitcoin and Ethereum remained the market leaders, collectively accounting for more than half of the total crypto market capitalization. Bitcoin’s triple-digit growth rate overshadowed the 37% increase in altcoins, solidifying its position as the reigning king within crypto circles.
Recent developments, including the U.S. Federal Reserve’s decision to maintain unchanged benchmark interest rates, further boosted market optimism. As of the latest update, BTC and ETH witnessed a 2.80% and 1.76% increase, respectively, in the 24-hour trading period.
Shivam Thakral, CEO of Indian crypto exchange BuyUcoin, emphasized the market’s upside potential, citing the listing of Invesco Galaxy spot Bitcoin ETF and BlackRock on the DTCC site. However, he also cautioned investors about potential volatility due to rapidly evolving macroeconomic conditions.
