Context of the article
The global economy is recovering from the period of saturation, and the major indices around the world are flourishing. although inflation has declined in most countries, policymakers warn that meeting central banks’ target of around 2% will be quite difficult. Indermit S. Gill, senior vice president and chief economist of the World Bank Group predicts advanced and developing economies – will grow more slowly in 2024 and 2025 than in the decade before COVID-19.
So the pertinent question – the crypto boom in 2024: is this a sign of recovery or a bubble in the making?
Let’s find out
The Crypto Fear & Greed Index has been above 70 for more than three weeks. The index ranges from 0 (extreme fear) to 100 (extreme greed), a high value is a warning of a possible market correction. The past two months have seen an unprecedented level of demand – something the crypto market has never seen in its entire existence.
Source: Alternative.me
AMBCrypto’s research report before March 2024 reveals that US billionaires have sold their stocks. Of all the sales, the most high-profile is that of JPMorgan Chase & Co. CEO Jamie Dimon, who sold $150 million worth of stock in the banking company for the first time in 18 years. Every billionaire has their own reasons, but it may have something to do with the growing interest in cryptocurrencies from big money players.
Which Coins Were the March Market Movers?
Bitcoin
- The king coin reached a new All-Time-High (ATH) of $73,797.35 on March 14, with its market capitalization surpassing that of silver. While analysts have predicted $100,000 as the next ATH, the AMBCrypto report argues Bitcoin has not yet reached its ATH figure and investors trade it with a false sense of achievement in mind.
- Interestingly, once the coin breached the $72,000 level, the long-term holders cohort increased their overall distribution pressure. Consequently, the market recorded a realized profit of more than $2.6 billion per day.
- Now, if BTC manages to convert the $70,000 level into strong support, New Yorkers will benefit the most from the price increase. It is important to note that the psychological level of $70,000 is a good liquidity area. It has already been tested several times as resistance. This strengthens the case for the bulls.
- Meanwhile, the arrival of a Bitcoin spot ETF has been a major boost for the cryptocurrency, with inflows of approx $12.1 billion at the end of the first quarter.
- The good news is that most investors holding BTC in their portfolios are currently profitable. According to the Supply in Profit metric, 18 million addresses were profitable on April 1, an increase of 3 million from the cycle low of 15 million.
Source: Glassnode
Ethereum
- With the Dencun upgrade goes live in MarchEthereum unlocked a new level of developer growth as it addressed the scalability-related challenges and gas cost issue.
- Ethereum price has successfully maintained its support at USD 3500. Recently, the price reached $4,000, its highest point in almost two years. This can be attributed to several factors including increased DeFi activity and anticipation of the Dencun upgrade.
- AMBCrypto’s research report shows that the outlook for Ethereum is positive and that a spot ETH ETF could shape its future rally.
- Notably, after a major sell-off on March 14, the 10,000 richest wallets bought 42.56 million ETH. The expectation is that this buying wave will help Ethereum is off to a good start in April 2024 for two main reasons. First, these big investors have a lot of power over the price of Ethereum and can also influence the way ordinary people invest. Second, these portfolios typically plan to hold their assets for a long time, which could mean there won’t be much selling pressure in April.
Source: Santiment
Memecoins and DePIN sector
- In the past month, meme coins are fun WIF, PEPE and FLOKI saw a large increase in their prices, and even outperform popular ones like DOGE and SHIB. Many traders saw their investments increase by triple digits. Trading activity consequently reached a peak last seen in November 2021. According to AMBCrypto’s reportmany of these traders hoped to make enough money from meme coins to buy Bitcoin later.
- During every major wave of the crypto market, there are trending stories that grab everyone’s attention. For example, in 2017, people were excited about ICO coins and privacy coins. Then, in 2021, DeFi, NFTs, and Layer 1s became the big things. Analysts now predict that in the period 2024-2025 DePIN is becoming the most important trend in the crypto world.
- Since the start of January 1, 2024 DePIN’s market capitalization has grown by $35,370.826 million. Solana saw the largest increase in trading volume among the major DePIN projects, with a notable increase of 52% in the last 30 days.
Source: DePINscan
The biggest loser
According to Alex Casassovici, founder of Web3 streaming project Azarus, we are witnessing the first real bear market for NFTs. Indeed, NFT sales volume is down 8.50% over the past 30 days, while NFT transactions are down 45.79%. NFT sellers, on the other hand, are up 45.25%. This therefore paints a very bleak picture for the entire market.
Interestingly, AMBCrypto’s report reveals a surprising outperformance of Bitcoin NFTs compared to their Ethereum counterparts.
Read Bitcoin’s [BTC] Price forecast 2024-25
About Crypto Market Report – March 2024
AMBCrypto’s latest report is a comprehensive analysis of March market trends and provides valuable insights for predicting market movements in April.
The report delves into important topics such as:
- Bitcoin vs inflation
- BTC’s next ATH projection
- Ethereumization of Bitcoin
- The price potential of ETH
- NFT market dynamics
- Market forecast for April
You can download the full report here.