Bitcoin hits all-time high

In March 2024 we explore Bitcoin’s new ATH, key volatility drivers, speculative asset interest and ETF effects. Includes BTC halving insights and an update on Glassnode’s near-term momentum and risk framework.

Executive Summary

·Monthly Overview: In February 2024, the Bitcoin market surged, driven by positive momentum, significant price gains, and new capital inflows (especially through U.S. spot Bitcoin ETFs such as BlackRock IBIT). Record ETF inflows and a reduction in loss supply reflect bullish investor sentiment, while speculative and strategic long-term holder allocations point to a balanced but speculative market landscape.

· Market Momentum: March continued February’s strong positive momentum, pushing Bitcoin to new heights before encountering downside volatility and major liquidations. Profit-taking by long-term holders and the upcoming Bitcoin halving indicate market strength and increased volatility, providing traders with a combination of risk and opportunity.

Indicator Spotlight: The SLRV Ribbons indicator compares short-term Bitcoin trades to long-term holdings and is a key indicator of shifts in market momentum. A high SLRV ratio signals new capital inflows, while a low ratio suggests the long-term holder base is consolidating.