Review of 2024Q1: Bitcoin’s market share has risen to 52%. How much room for growth is there in this bull market?
Original title: The Current State of Crypto in 10 Graphs
Original source: THE ALTCOIN INVESTOR
Original translation: TechFlow
Today I want to share 10 charts to help you navigate the current cryptocurrency market.
Ten charts of the current state of cryptocurrency
Glassnode and Coinbase have released the Guide to Cryptocurrency Markets , a quarterly series designed to provide detailed analysis of major developments in the cryptocurrency market.
Here are 10 charts from the report that caught our eye:
1. Bitcoin Dominance Rises from 50% to 52%
Alt season, typically triggered by the halving, would reduce Bitcoin’s dominance in favor of newer altcoins. This has not happened yet, so there is plenty of room to grow.
2. Crypto Correlations
Cryptocurrency has historically had very low correlations to traditional asset classes, suggesting it can provide a meaningful source of idiosyncratic exposure in many different portfolios.
3. Stablecoin Supply Rise Over 14% in Q1
An important metric to consider when evaluating stablecoins is the amount and nature of the reserve assets they hold. Stablecoin supply rose over 14% in Q1 as market participants continue to increase their use of stablecoins.
4. Bitcoin Price Performance After Halving
This chart measures Bitcoin’s total return during each halving cycle. In the 12 months following the first 3 halvings, the price:
· Increased over 1000% after the first halving (red line)
· Over 200% growth after the second halving (blue line)
· Over 600% growth after the third halving (green line)
5. Bitcoin Available Supply
The difference between the current circulating supply of tokens and the illiquid supply (lost wallets, long-term holdings, locked) determines the amount of available Bitcoin supply.
After peaking in early 2020, Bitcoin’s available supply has fallen to around 4.6 million BTC, a significant shift ahead of the fourth halving and a departure from the steady increase in available supply observed during the three previous halvings.
6. Bull Cycle Performance
Bitcoin has historically shown exponential growth in bull markets, with prices surging multiple times from lows. The current bull cycle began in November 2022, and prices have reached 4x their lows. As the chart shows, the two previous bull markets (2015 to 2017 and 2018 to 2021) saw prices rise 100x and 20x, respectively.
7. Bitcoin Price Performance Since Lows
Bitcoin has completed four cycles, each of which included a bull and bear market. This chart shows how the current market cycle, which began in 2022, compares to previous cycles. In the current cycle, Bitcoin is up over 400% in the 17 months since the low. The current cycle is closest to the 2018-2022 cycle, where Bitcoin was up 1,000% 24 months after the low.
8. Ethereum Price Performance Since Low
Ethereum has completed two cycles that included both a bull and a bear market. This chart shows the current market cycle that began in 2022 compared to previous cycles. In the current cycle, Ethereum is up over 200% in the 17 months since the low. The current cycle is closest to the 2018-2022 cycle, where Ethereum was up 400% 24 months after the low.
9. Ethereum Supply Profitability Status
Observing supply profitability can help reveal the position of cryptocurrency prices in the current market cycle, as previous cryptocurrency market cycles were characterized by three phases:
Price Bottom: In the final stages of a bear market, a prolonged price decline leads to a rising share of loss-making supply (% of profitable supply < 55%).
Excitement: During a parabolic price uptrend in a bull market, the share of profitable supply dominates (% of profitable supply > 95%).
Bull/Bear Transition: The transition period between bottom exploration and euphoria, when supply profitability is closer to equilibrium (% of profitable supply is between 55% and 95%).
10. Ethereum Weekly Active Addresses Grow 26%
Active addresses grew 26% in Q1 as prices rose and Ethereum’s successful Dencun upgrade took hold.
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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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