Crypto markets have become increasingly liquid, according to Coinbase Institutional and Glassnode’s latest report titled Q4 2024 Guide to Crypto Markets.
Among the things the analysts are positive about is an uptick in onchain activity and trading volumes that suggest crypto markets are more liquid and sophisticated.
The report found that Bitcoin’s monthly trading volumes have averaged $2 trillion year-to-date, up 76% from the last year.
“Open interest in bitcoin derivatives averaged $44 billion in Q3 2024,” said the analysts, also noting that “BTC positioning looks cleaner after significant long liquidations.”
The crypto market had all the makings of a bull run in early 2024, with bitcoin rallying to a new all-time high ahead of $73,800. The approval of spot bitcoin exchange-traded funds and bitcoin’s fourth halving set in motion a wave of increased trading activity and positive sentiment.
However, the leading digital asset, and the wider crypto market has been largely rangebound leading into the final quarter of the year. Bitcoin has rallied 54% year-to-date, while the price of ether had rallied a meagre 13% over the same period.
Researchers from Coinbase Institutional and Glassnode believe that this relative lack of direction can partly be attributed to uncertainties that lie ahead, including the U.S. elections.
“But the lack of strong price moves doesn’t mean that crypto is stuck in a holding pattern. In fact, we’ve seen ample signs that the market has matured dramatically this year,” said the researchers
“As markets have traded sideways, the pendulum has swung away from greed and toward fear, perhaps laying the groundwork for the next rally.”
