- Runes on the Bitcoin blockchain guide traders Huge losses are likely to occur in the coming months.
- Staking on the Ethereum blockchain is increasing, and there are concerns about its future potential as “money.”
Ahead of the FOMC (Federal Open Market Committee) meeting in May 2024, the virtual currency market showed a significant decline. Bitcoin fell to $56,494, a level last seen on February 28, 2024. Market sentiment tilted toward fear as investors rebalanced their portfolios in hopes of no rate cuts.
At the time of writing, Bitcoin's MVRV ratio (7-D) has fallen to -8.099%. On average, Bitcoin holders were underwater. It suggested that the market value is significantly lower than the price at which most BTC was acquired.
This may also be interpreted as a sign of underestimation. According to AMBCrypto’s April market report, Bitcoin will continue to decline for most of the May trading session.
Source: Santiment
However, the report discusses three factors (related to BTCFi, options ETFs, and Solana) that could reverse King Coin's trajectory. Investing through the BTC ETF will have a bigger impact on prices than expected Fed rate cuts or geopolitical tensions.
Since April 24, BTC ETF outflows have exceeded inflows. On April 30th, $161 million in outflows were recorded, the highest amount in the past three days.
However, AMBCrypto's report sheds new light on a new perspective, revealing that many institutions are seeking approval for Bitcoin ETFs. If these ETFs get the green light in May, demand could increase significantly and prices could rise.
Bitcoin Savior – Runes
The rise of DeFi on the Bitcoin blockchain could help traders avoid huge losses in the coming months (AMBCrypto's report details this).
Interestingly, Bitcoin's 7-day moving average of market capitalization to transaction fee ratio was lower than that of Ethereum. This highlighted a significant spike in activity on the Bitcoin network since the launch of the Runes protocol. Basically, this ratio shows how much money is flowing into the cryptocurrency relative to the trading fees paid.
Altcoin performance in April
Following Bitcoin, the prices of other cryptocurrencies also fluctuated significantly. April was a volatile month for most altcoins. Geopolitical tensions and inflation concerns depressed the overall market. However, some sectors, such as gaming tokens, have grown.
According to a report by AMBCrypto, Ethereum’s dominance is being challenged by Solana, whose DeFi market share is steadily surging. Meanwhile, the Ethereum ETF is still awaiting SEC approval, and stakes in the Ethereum blockchain are increasing, raising concerns about its future as “money.”
Read AMBCrypto Market Analysis – April 2024 Edition.
Dive deep into April market trends, valuable data, and unique insights to help you navigate market trends in May.
This report delves into important topics such as:
- The growing popularity of DeFi in Bitcoin
- Americans' love for meme coins
- Collapse of USDT dominance
- Solana's TVL Masterstroke
- NFT market recovery
- May market forecast
You can also download the full report here.
