- \n
- Runes on Bitcoin\u2019s blockchain can save traders from massive losses in the coming months.<\/strong><\/li>\n
- Staking on the Ethereum blockchain<\/strong> is on the rise, raising concerns about its future as \u201cmoney.\u201d<\/li>\n<\/ul>\n
Ahead of the FOMC meeting (Federal Open Market Committee) of May 2024, the crypto-market saw a significant decline. Bitcoin dropped to $56,494 \u2013 A level last seen on 28 February 2024. Market sentiment skewed towards the side of fear as investors rebalanced their portfolios in expectation of no rate cuts.<\/p>\n
Bitcoin\u2019s MVRV Ratio (7-D) fell to -8.099%, at press time. On average, Bitcoin holders were underwater. It suggested that the market value was significantly lower than the price at which most acquired BTC.<\/p>\n
It could also be taken as a sign of undervaluation. According to AMBCrypto\u2019s market report for the month of April, Bitcoin will continue its downward journey for the majority of trading sessions in May.<\/p>\n
![\"\"](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/05\/Bitcoin-BTC-17.14.07-01-May-2024.png\")
<\/a><\/p>\nSource: Santiment<\/p>\n<\/div>\n
However, the report discusses three factors (Related to BTCFi, Options ETF, and Solana) that could reverse the king coin\u2019s trajectory. Investments through BTC ETFs will have a bigger impact on price, compared to the fed rate cut anticipation or geopolitical strains.<\/p>\n
Since 24 April, BTC ETF outflows have been outweighing the inflows. On 30 April, a $161 million outflow was registered \u2013 The highest in the last three days.<\/p>\n
AMBCrypto\u2019s report throws light on a fresh perspective though \u2013 It reveals numerous institutions are seeking approval for Bitcoin ETFs. If these ETFs are green-lit in May, it could lead to a significant hike in demand, potentially driving the price north.<\/p>\n
![\"Source:](\"image\/svg+xml,%3Csvg%20xmlns=\")
![\"Source:](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/05\/Screenshot-2024-05-01-at-5.34.43-PM.png\")
<\/a><\/p>\nBitcoin\u2019s savior \u2013 Runes<\/strong><\/h3>\n
The rise of DeFi on the Bitcoin blockchain could save traders from registering massive losses in the coming months (AMBCrypto\u2019s report dives into its full details).<\/p>\n
Interestingly, the 7-day moving average of Bitcoin\u2019s market cap to transaction fee ratio fell below that of Ethereum. It highlighted a huge surge in activity on the Bitcoin network since the launch of the Runes protocol. Basically, this ratio indicates how much money is flowing into a cryptocurrency relative to the transaction fees being paid.<\/p>\n
Altcoins\u2019 performance in April<\/strong><\/h3>\n
Following Bitcoin\u2019s footsteps, the price of other cryptocurrencies also fluctuated by a significant degree. April was a volatile month for most altcoins. The broader market witnessed a downturn due to geopolitical tensions and inflation fears. However, some sectors thrived, like gaming tokens.<\/p>\n
As per AMBCrypto\u2019s report, Ethereum\u2019s dominance has been challenged by Solana, whose DeFi market share has been surging steadily. Meanwhile, an Ethereum ETF is still pending SEC approval, and staking on the Ethereum blockchain is on the rise, raising concerns about its future as \u201cmoney.\u201d<\/p>\n
Take a look at AMBCrypto\u2019s Market Analysis \u2013 April 2024 Edition<\/strong><\/h3>\n
Dive into April\u2019s market trends, valuable data, and exclusive insights to help yourself navigate through May\u2019s market movements.<\/p>\n
The report delves deep into key topics like \u2013<\/p>\n
- \n
- Rising popularity of DeFi on Bitcoin<\/li>\n
- America\u2019s love for memecoins<\/li>\n
- Fall in USDT\u2019s dominance<\/li>\n
- Solana\u2019s TVL masterstroke<\/li>\n
- NFT market\u2019s recovery<\/li>\n
- Market forecast for May<\/li>\n<\/ul>\n
You can also download the full report here<\/a>.<\/p>\n
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- Staking on the Ethereum blockchain<\/strong> is on the rise, raising concerns about its future as \u201cmoney.\u201d<\/li>\n<\/ul>\n