Crypto is About To Explode!! These Predictions Are INSANE!

crypto is officially in the early stages of euphoria and how awesome does it feel a crypto sentiment is overwhelmingly positive and why wouldn't it be well why not why not pretty much everyone is in profit and the best part we're only just getting started and this was backed up by a recently released crypto report which shows just how early we still are today we'll break down this report for you in simp terms and tell you what this could all mean for the crypto Market stay tuned now the report will be summarizing today is titled quote

digital asset report institutional perspective it was recently published by glass node and fanara digital we'll leave a link to the full report in the description for you if you want to check it out in full a fair warning though it was written right before BTC went on the Rampage to new all highs so not all the information will be applicable today it's just uh one of those things folks crypto moves very fast after all in any case we'll be giving you the key highlights in today's video anyway the report starts with a look at how

the crypto Market has been performing as a whole starting with the two largest cryptos BTC and eth the authors note that since FTX spectacularly collapsed way back in 2022 the market has recovered very well and this is an understatement for BTC which had gained 372 at the time of the report's publication and it's been running on Rocket Fuel ever since as you'll know this is largely thanks to the spot Bitcoin ETFs which have encouraged institutional investors to enter the space in a more regulated fashion as for ethereum and The Wider crypto Market things have recovered

in a similar fashion albeit not in quite a dramatic way to BTC in that same period eth recovered 137% slightly underperforming the broader altcoin Market which gained 158% naturally this is because BTC dominance has remained very high and new retail has yet to arrive and explore the broader crypto Market to back this up the report users onchain data to assess the capital rotation in crypto the chart provided it clearly shows that in the last cycle investors would allocate most of their Capital to BTC and then rotate to Els and stable coins once BTC hit its

peak however because of the lack of retail in this cycle not much Capital has shifted away from BTC so far anyway now the next part of the report Zooms in on the spot Market the authors highlight that trading volume on centralized exchanges peaked when BTC hit its March alltime high but have been steadily climbing since May in fact trading volume on Sexes have been consistently climbing since October 2023 are showing that investors have been positioning themselves without really moving the market the authors then use a metric called cvd which stands for cumulative volume Delta to

keep things simple the cvd metric basically measures cell pressure and as it so happens cell pressure has remained strong since btc's March high but this has less to do with price speculation and more to do with the supply shocks we saw earlier in the year like mount g distributions or the German government selling nearly 50,000 BTC it's crazy how btc's parabolic rally can make even recent events feel like a a distant memory he the authors then turn their attention to bitcoin's derivatives Market which have grown a lot in recent years we won't go over everything

here for the sake of time but there are a few key takeaways the first is that the practice of using crypto as collateral for a 100x leverage Futures position is becoming far less common instead more Futures Traders are using USD backed stable coins which has changed the Dynamics of the crypto Market but that's a topic for another time now on top of this the authors point out that following the approval of the spot Bitcoin ETFs earlier this year we saw a wave of leveraged Traders getting liquidated in either direction especially after btc's peak in March

however the amount of liquidations since then has actually been on the decline and this means that btc's current rally should have a fairly smooth ride ahead not many crazy liquidations at least for now the authors then look at the size of the borrowing and lending Market which they estimate to be roughly the same across both CI and defi platforms they note that thanks to various reaking incentives there's been a steady increase in the amount of borrowed crypto since March the stable coins made up around 1/3 of the demand here whereas eth and other tokens made

up the remaining 23s and this makes sense when you consider that most of this activity would have been happening on Lio Finance which supports liquid Stak eth and by the way if you enjoying this video so far then let it be known give that like button a boost and don't forget to subscribe and ping the Bell notifications as well so you don't miss our next video the next part of the report takes a look at the US spot Bitcoin ETFs which you'll know were approved back in January and opened The Floodgate to traditional and institutional

investors everywhere according to the report the ETFs now hold roughly 5 % of btc's Supply which some would argue is more of a net negative than a positive as bullish as the ETFs have been some Bitcoin purists believe that btc's concentration in traditional Financial Vehicles goes against its core ethos as an alternative to the Legacy Financial system anywh who the authors note that whilst BTC was chopping sideways since March ETF volumes were consistently between 1 billion and 2 billion per day but this began to spike as BTC went on its Mission To The Moon according

to the report the average price that ETF investors accumulated BTC was around 62k what's impressive is that because ETF holders are typically inclined to hold longterm the outflows have been relatively low even as they move into profit although this does beg the question of how much damage this would do to btc's price once they do decide to start selling logically these outflows would push btc's price down just as fast as it pushed it up but uh well let's enjoy this for now and cross that bridge when we get there eh the authors then analyzed the

amount invested into the ETFs relative to the capital inflow into BTC between 4 and 5% of the total Capital flowing into BTC can be attributed to the ETFs which aligns perfectly with the amount of BTC held by the ETFs themselves which you'll recall is also between 4 and 5% as the authors put it quote this provides a reasonable Baseline for evaluating their influence on the market and next the authors compare the spot ETFs for Bitcoin and ethereum and as you'll know the demand for the spot ethereum ETFs has been somewhat lackluster to say the least

and as such the inflows and outflows have only managed to move eth's price up or down by about 1% meanwhile btc's price is much more affected which can move up or down by around 8% as a result of ETF inflows and outflows now the next part of the report takes a look at crypto's adoption by assessing the active entities metric which is a neat little metric that combines any active addresses that could belong to a single entity the benefit here is that it gives us a much more accurate user count when the market is in

uptrend the number of active entities grows in response interestingly enough the number of active entities will also Spike when the market capitulates according to the report while BTC was chopping sideways throughout the year there were between 180,000 and 300,000 active entities transacting on the Bitcoin Network what's crazy is that there have been almost 42 million active entities since Bitcoin was first launched back in 200 9 while this is impressive it's also insanely bullish when you consider that 42 million users equates to around 0.5% of the world's population of course this assumes that everyone is self-

custody in their Bitcoin uh most people are probably using exchanges as custodians and if that's you stop it get a hardware wallet a link to our deals page in the description and speaking of which not only does it have discounts on Hardware wallets but also Exchange sign up bonuses of up to $100,000 and trading fee discounts of up to 70% these uh won't be available forever so check that out below Pronto anyway another adoption metric is how much daily onchain volume takes place on the Bitcoin Network according to the authors's quote on an unfiltered basis

Bitcoin currently sees around 41 billion daily onchain volume similar to traditional payment processes like visa and MasterCard that's insane however the caveat is that word unfiltered basically once you filter out the number of transactions taking place on centralized exchanges the real volumes are closer to 8 billion per day which is still pretty damn impressive for perspective that's higher than the market cap of every single crypto outside of the top 20 next the authors take a look at bitcoin's realized cap now for those who don't know realized cap is similar to market cap except that instead

of valuing BTC based on its current price a realized cap values BTC based on the price of BTC when that Bitcoin was last transacted on chain essentially this gives you a less volatile picture of btc's overall value and as you'd expect btc's realized cap has been increasing in recent weeks suggesting continued BTC buying even at higher prices and this dovet tales with a tokenization of real world assets or rwas which has been another narrative attracting investors to crypto and this makes sense considering rwas consist of assets investors are familiar with like gold treasuries and other

Securities as you'll also know stable coins have become the backbone for the crypto industry now being the primary trading pair for most cryptocurrencies and used also as collateral within defi protocols what you may not know is that stable coins are technically also rwas as they're backed mostly by us Bonds in recent months we've seen the likes of Black Rock and Franklin Templeton dipping their toes into tokenized rwas giving them first mover advantages and notably asset managers have adopted the more simplified tokenized treasuries above all other tokenized rwas whereas more complicated products have seen much slower

adoption in the next part of the report the authors take a look at institutional allocators now starting with funding from Venture capitalists or VC's despite btc's ungodly rally to new all-time highs VC investment has been surprisingly slow which is in stark contrast to previous bull cycles if you watched our recent video on the lack of VC investment you'll know that VC interest today is about as low as it was in 2020 3 and this is likely because they're waiting for the next big narrative spoiler alert but it won't be the so-called mecoin super cycle we'll

leave a link to that video in the description for you by the way next the authors turn to the largest publicly traded companies holding BTC on their balance sheets it comes as no surprise that the company that takes the crown here with well over 270,000 BTC is micro Strat thanks in large part to Michael sailor's insanely bullish outlook on bitcoin incidentally we also put out a recent micro strategy update and you can learn more about what sailor and Co have been up to using the link in the description of course other listed companies holding BTC

include Bitcoin mining companies like marathon and Riot and a few companies unrelated to the crypto industry although to be fair one of these is Tesla and it's a bit hard to say that it's completely unrelated to when its founder and CEO is Elon Musk the uh Doge father himself anyway other companies mentioned include AKA which is an Energy Services Company and Boya which is an online gaming company uh for anyone wondering Tesla holds 9,720 BTC whereas AO holds 1,170 BTC and Boya holds 1,100 BTC at least at the time of shooting this video What's even

more bullish is that Tech Giant Microsoft also has an upcoming call with its shareholders where they will vote whether it should start holding BTC as well and if Microsoft adopts BTC on its balance sheet you can bet your bottom satachi that other tech companies will follow suit uh the call is scheduled to take place on the 10th of December by the way so uh mark your calendars guys now in the final section of the report the authors take a look at where we are in this cycle but as we said at the beginning this has

become much more obvious now that BTC is rallying like crazy in a nutshell the authors explained that BTC experienced a lot of profit taking once it hit its peak back in March and would only enter a stage of euphoria once it broke above that 69k resistance level of course this means that we are now well and truly feeling that uh Euphoria the authors then assess the annualized volatility of the crypto Market which has been declining with each and every Market cycle on the one hand this is a good thing because a key reason why people

are put off from investing into crypto is because of how volatile it is and the inherent risks that would bring to their portfolio logically then reduced volatility would mean more adoption and more money flowing into the market on the other hand the reduced volatility also results in diminishing returns for each market cycle put differently those crazy 1,000x returns are going to be harder to come across and it's safe to say that those kinds of gains are long gone for BTC and other large cap altcoins apologies to any Moon boys out there in all seriousness the

authors provid some stats about the realized volatility for the last three cycles and in case you were wondering realized volatility is a measure of how much a crypto currency price has actually fluctuated over a given period of time btc's realized volatility in the 2017 bull market was between 120 and 150% whereas the realized volatility in the 2021 bull market was between 80 and 100% according to the report the realized volatility for the bull market this year is just between 40 to 60% and finally the authors round off this report by looking in at aetric called

the realized cap hodle waves which assesses the composition of network wealth historically when BTC hits a cycle top there is a sharp spike in investor wealth which makes sense because at that point pretty much everyone is in profit as more and more people find themselves in the green new retail investors on the outside will feel the fomo and start aping into the crypto Market however so far this time around we haven't seen those levels being hit in other words this bull cycle is far from over and if you worried that you missed the boat this

could help put your mind at ease so then the big question what does all this mean for crypto well in case it wasn't already clear we are right at the beginning of An Almighty rally that could take crypto to Valhalla and given the result of the US election there's no telling where that rally could stop not only do we have a pro Bitcoin president of the US which is the world's largest economy but the Republicans have control of the Senate and the House of Representatives this means there are now an overwhelming number of pro crypto

politicians across all three major decision makers in the US this all but guarantees that the US will finally introduce positive regulations that will allow the crypto industry to thrive starting in 2025 what's more is that assuming Trump sticks to his promises one of crypto's biggest obstacles Gary Gensler will soon be pushed out of his role as the chairman of the SEC assuming that he doesn't resign before then it's fitting that his initials are literally GG hopefully this means that the days of pointless overreach and unclear guidance are finally put in the past who knows we

might even finally get to learn what defines a security and a commodity it goes without saying that this will bring more legitimacy to the crypto industry which will attract new investors to the space particularly the more traditional investors who would normally rather play it safe so to speak and this is especially true when you consider that BTC is now in price discovery mode which is blowing up everyone's portfolio like a balloon it's only a matter of time before Outsiders want a piece of that action and start going further down the risk curve and this is

where you guys have already won the game you've managed to front run every single one of them especially when it comes to altcoins and that's because once BTC tops out investors will start the great rotation into Els in order to maximize their gains the fact that nobody believes it's going to happen is just evidence of the fact that if you watching this you're early as Bitcoin dominance floats around 60% at the time of shooting it may be a good idea to start planning your altcoin rotation not Financial advice of course okay that's all for today's

video guys uh but I'd love to get your feedback so let me know down in the comments where do you think Bitcoin is going in the next few months H and of course you enjoyed this video you know what to do smash that like button subscribe button and Bell icon too and if there is someone you know who would benefit from this video well why don't you take a second to share it with them as always thank you very much for watching and I'll see you in the next one this is Nick signing off [Music]