Crypto markets are becoming increasingly liquid, according to the latest report by Coinbase Institutional and Glassnode. The report is titled Q4 2024 Guide to Crypto Markets.
Increasing Trading Volumes
Analysts note that the increase in on-chain activity and trading volumes indicates that crypto markets are becoming more liquid and sophisticated. According to the report, Bitcoin 
$67,169‘s monthly trade volume has reached an average of 2 trillion dollars since the beginning of the year, and this figure has increased by 76% compared to last year.
Analysts stated that open positions in Bitcoin derivatives averaged $44 billion in Q3 2024 and that “BTC positioning appears clearer following significant long defaults.”
“BTC positioning has become clearer following significant extended defaults.”
Market Dynamics
The crypto market had the potential for a bull run in early 2024, with Bitcoin reaching a new all-time high above $73,800. The approval of spot Bitcoin exchange-traded funds and Bitcoin’s fourth halving led to an increase in trading activity and positive sentiment.
However, the main digital asset and the overall crypto market showed largely limited activity as we entered the final quarter of the year. Bitcoin is up 54% since the beginning of the year, while Ether is up 13% in the same period.
Future Outlook
Researchers at Coinbase Institutional and Glassnode think that the market’s lack of direction can be partially attributed to upcoming uncertainties such as the US elections. “The lack of price movements does not mean that crypto is in recession,” the researchers wrote. “On the contrary, this year we have seen ample signs that the market is maturing dramatically,” he said.
He further added, “While markets have been flat, the swing has shifted from greed to fear, and this may be setting the stage for the next rally.”
The maturation of crypto markets and increased liquidity is considered a positive signal for future developments. Investors expect that the market will move more steadily as it deepens.
These developments show that crypto assets are increasingly adopted by institutional investors. The increase in liquidity in the market contributes to a more controlled fluctuation.
These dynamics in crypto markets encourage investors to develop new opportunities and strategies. Market maturation increases long-term growth potential.
Finally, these developments in the crypto markets are considered an important turning point for players in the industry. Rising liquidity and increasing trading volumes indicate that the market is on the path to sustainable growth.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
