Bitcoin Enters 'Euphoric' Phase Amid Warnings of Possible Crypto 'Fire Sale'
Summary:
Bitcoin is in its "euphoric" phase, bolstering the progression of the bull market, according to a report by Glassnode. Meanwhile, Telegram users are being warned of a vulnerability that could lead to potential attacks. Additionally, BitMEX co-founder, Arthur Hayes, predicts a possible “fire sale" of crypto assets due to the Bitcoin halving and strain on dollar liquidity. The article stresses caution and research before making any investment decisions.
In a recent report, data provider Glassnode purports that Bitcoin (BTC) has already transitioned into a "euphoric" period, bolstering claims that the bull market is progressing further than some anticipate. On the other hand, Telegram users have been cautioned by a blockchain security enterprise about a discovered vulnerability that may open users to potential attacks. Arthur Hayes, co-founder of BitMEX, predicts a possibility of a “fire sale" of crypto assets later this April due to the Bitcoin halving and strain on dollar liquidity.
Bitcoin and the larger crypto markets may already be immersed in their "euphoric" period, according to spot trading volumes scrutinized by Glassnode. The on-chain data company published a report indicating Bitcoin's bullish momentum has been on the rise since October 2023. This year's Bitcoin performance has been backed by robust spot demand, resembling the previous bull run in 2021.
The report from Glassnode claims, "Bitcoin’s year-to-date price movement is reinforced by a remarkable increase in spot trade volume and exchange flows on-chain.” It's noteworthy that the proportion of coins less than six months old has risen dramatically from the previous year, up to 47% from only 20% at the outset of 2023. This metric usually peaks during bull markets between 84% and 95%.
Interestingly, the market's euphoric state coincides with Bitcoin's impending quadrennial halving event, a precursor to historical bull runs. The blockchain security company, CertiK, has highlighted a significant vulnerability on the Telegram platform that is leaving users exposed to malevolent attacks. Users can mitigate their risk by disabling the auto-download feature in their Telegram Desktop settings.
In an April 8 blog post, Arthur Hayes, BitMEX's co-founder, expressed his view that the upcoming Bitcoin halving could provoke a major "fire sale" of crypto assets, which could impact the crypto market for weeks. Though he believes the halving will bolster prices in the medium term, he cautions that crypto prices could take a hit shortly before and after the event. According to Hayes, this decline will likely be fuelled by tighter than usual dollar liquidity co-occurring with the halving.
Hayes also elaborates on his theory about how policies from the United States Federal Reserve and Treasury affect the markets. This article is purely informational and should not be construed as investment advice.
Reported by Geraint Price, Sam Bourgi, and Felix Ng.
Published At
4/9/2024 10:58:00 PM
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