Crypto market first quarter review: BTC leads with over 70% increase, ETH up 49%
Original author:Lucas Outumuro, IntoTheBlock
Original Compilation: Felix, PANews
Original author:
The first quarter review of the encryption market: BTC rose by 70%, the turning point of market recovery?
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Network Fees: The sum of what it costs to use a particular blockchain
This metric tracks the willingness to spend and the need to use BTC or ETH.
BTC Quarterly Network Fees Hit Highest Since Q4 2021 As Network Activity Increases With Bitcoin NFT Protocol Ordinals
Ethereum Fees Climb to Highest Since Q2 2022 Affected by USDC Depeg and ARB and BLUR Airdrops
Exchange Net Flow: Net inflows minus net outflows of a specific cryptoasset to a centralized exchange
Net BTC inflows to centralized exchanges in the first quarter were $663 million, compared to net outflows of $4.1 billion. Given the roughly 70% rise in BTC’s recent price, it may be that some holders want to be safe.
Data on the chain
The net outflow of ETH in the first quarter was $815 million, which is much smaller than the net outflow of $5.8 billion in the fourth quarter of 2022.
The first quarter review of the encryption market: BTC rose by 70%, the turning point of market recovery?
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BTC leads the way: BTC outperforms most assets in Q1 2023
BTC's stellar performance may indicate its growing appeal as a digital store of value. Data from ITB Capital Markets shows that the correlation between BTC and gold prices rose from -0.3 at the beginning of the year to 0.9 at the end of the quarter.
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ITB Ethereum Price Indicator
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Just as BTC was born, the recent banking crisis has driven BTC’s rise
The first BTC block reads the headline on the front page of The Times, Jan. 3, 2009: Chancellor on the verge of second bailout for banks. Tout the value of BTC as a potential alternative.
Fourteen years later, as the U.S. and parts of Europe experience another banking crisis and ensuing central bank intervention, BTC is up more than 20%, outperforming the vast majority of assets.
Since then, the Fed’s balance sheet has increased by $392 billion, sparking bullish sentiment. Because many expect increased liquidity and lower interest rates in the future to boost BTC (Balaji has a target price of up to $1 million).
Where is cryptocurrency headed next?
While prices and market sentiment recovered in the first quarter, the next move for cryptocurrencies remains unclear.
Ethereum Financial Indicators
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Strong position support: Based on the data on the chain, it can be seen that both BTC and ETH are currently overbought
$27,000 and $1,700 are the recent support levels for BTC and ETH, respectively, because these two positions have the strongest support, 6.238 million BTC (approximately $17 billion) and 8.4 million ETH (approximately $15.1 billion).
ETH holdings indicator
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Addresses holding assets for more than a year have added $13.4 billion in BTC and $4.7 billion in ETH through 2023
If the history of previous bull markets repeats itself, it is unlikely that these addresses will sell until close to the previous all-time high
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Q2 catalysts: Beyond macro and on-chain factors, there are other things to watch out for
The BTC halving is still a year away, but given how many see the event as the driving force behind the cryptocurrency cycle, many may start buying ahead of the halving. On the other hand, the date for Mt. Gox to return the previously stolen BTC worth $17.6 billion is getting closer.
