The analysis shared by verified CryptoQuant analyst, Burak Kesmeci, indicates that more than 19 million ETH is now held by the so-called “accumulation addresses.�?In January 2024, these addresses held about 11.5 million ETH.

The rapid increase in ETH held by accumulation addresses suggests that sophisticated investors may anticipate a rally in the digital assets market toward the end of the year.

Regulations boosted confidence, making Ethereum mainstream. It’s no longer just for tech enthusiasts – institutions and individuals see it as a key part of the financial future. I expect these addresses to hold over 20 million ETH by the end of the year. With Ethereum priced around $4,000, the total value will surpass $80 billion, making these accumulation addresses as valuable as some of the world’s largest companies.

As of October 18, 2024, US-based ETH spot ETFs hold total net assets worth $7.35 billion, representing almost 2.3% of Ethereum’s market cap. In the last week, ETH spot ETFs attracted $78.9 million in net inflows after two consecutive weeks of net outflows.

70% Of ETH Holders In Profit

Data from IntoTheBlock shows that 70% of ETH holders are in profit, while 28% are in loss and 2% are at breakeven. 

The case for heightened ETH volatility is strengthened by the recent sharp rise in open interest for the digital asset. Some crypto analysts are confident that ETH will re-test some of its crucial resistance levels before further upside movement.

For instance, crypto analyst Carl Runefelt recently opined that if ETH breaks the $2,640 resistance level, it could initiate a significant price rally. ETH trades at $2,663 at press time, down 2.4% in the past 24 hours.

According to a report by Blockworks Research, 69.2% of institutional investors holding Ethereum are engaged in staking the platform’s native ETH token. Of these, 78.8% are investment firms and asset managers.

Third-Party Staking Overshadows Solo Staking

Conversely, holders can stake with as little as 0.1 ETH through third-party stakers but must give up on some degree of control over their assets. Recently, Ethereum co-founder Vitalik Buterin stressed the need to lower entry requirements for ETH solo stakers to ensure greater network decentralization.

Once locked in staking, ETH can no longer be used for other financial activities throughout the DeFi ecosystem. This means that one can no longer provide liquidity to a variety of DeFi primitives, or collateralize one’s ETH to take out loans against it. This presents an opportunity cost for solo stakers, who must also account for the dynamic network reward rates of staked ETH to ensure they are maximizing their risk-adjusted yield potential.

Although the Ethereum staking ecosystem is evolving, this growth has not yet been reflected in ETH’s price. ETH has significantly underperformed against BTC for an extended period, only recently gaining traction after the US Federal Reserve’s (Fed) decision to cut interest rates.

Nonetheless, some crypto research firms remain optimistic about ETH’s potential comeback against BTC later this year. As of press time, ETH is trading at $2,616, up 0.8% in the past 24 hours.

Reverse ‘Kimchi Premium�?Makes Bitcoin Cheaper In South Korea

According to a report by The Korea Times, there is a price differential of more than $500 between Bitcoin’s price in South Korea and global markets. Analysts attribute this to a negative ‘kimchi premium.’

Korea prohibits foreign and institutional investors from using domestic exchanges, which makes the decline in retail investor demand a more direct factor.

Will A Regulatory Overhaul Help South Korea?

In 2022, South Korea elected pro-crypto Yoon Suk-Yeol as president. As part of his election campaign, Yoon promised to reduce government interference in crypto markets, calling existing regulations “far from reality and absurd.�?/p>

In contrast, neighboring Japan has openly embraced digital assets amid evolving crypto regulations. For instance, earlier this year, Japan’s Government Investment Pension Fund (GIPF), with $1.5 trillion in assets, expressed a desire to gain exposure to BTC. 

Bitcoin dominance (BTC.D), a metric that measures the proportion of the total cryptocurrency market cap commanded by the leading digital asset, has hit a new cycle high of 58.9%. The last time the crypto market witnessed this level of BTC.D was in April 2021.

Concurrently, the total crypto market cap has surged from $2.26 trillion on October 8, to $2.41 trillion on October 16, according to data from CoinGecko. However, the rise in the total crypto market cap is largely buoyed by the upward movement in BTC price.

ETH/BTC Ratio Must Rebound For A Potential Altseason

At press time, ETH/BTC trading pair stands at 0.0385, a level last seen in April 2021. The chart below shows that Ethereum has failed to establish a higher high against Bitcoin since at least November 2022, reflecting weak ETH price action over the past two years.

Further, the total value locked (TVL) in decentralized finance (DeFi) protocols across all blockchains has slid from almost $110 billion in June 2024 to $88 billion, indicating weak demand for altcoins among crypto investors.

For example, earlier this month, the altcoin market cap surpassed its 200-day exponential moving average (EMA), a key resistance level that signals strong altcoin performance in recent days.

Similarly, Steno Research recently remarked that ETH is set for a comeback following the US Federal Reserve (Fed) interest rate cuts. BTC trades at $67,769 at press time, up 2.5% in the past 24 hours.

According to a report by crypto exchange Bitfinex, Bitcoin’s decisive move past the crucial $63,000 resistance level, combined with encouraging on-chain metrics, points toward further potential upside move.

The report mentions that Bitcoin’s realized price of unspent transactions output (UTXO) age bands are a “pivotal on-chain metric for gauging Bitcoin’s market dynamics.”�?/p> For the uninitiated, Bitcoin’s UTXO age bands refer to the value at which different groups of BTC – based on their holding duration – were last moved. Essentially, it helps track the average purchase price across various age groups of BTC holders, indicating market sentiment and the profitability of specific cohorts.  Notably, the average realized prices for short-term (3-6 months) and mid-term (6-12 months) holders have historically been key support or resistance levels. The short-term holder price is around $63,000, while the mid-term holder price is $55,000. When Bitcoin trades below the average purchase price of these groups, it often signals a bearish trend. Conversely, a move above these levels can indicate bullish momentum.  Since BTC has surpassed the $63,000 resistance, further gains could be in sight. However, a failure to close above this level could have triggered a potential decline toward $55,000.

Market Displays Strong Appetite For Digital Assets

Bitcoin has been trading within a broad range for the past eight months. In the event of the onset of a bear market, selling typically ensues when the Coinbase Premium turns negative. However, such selling has not been observed, suggesting that despite the fluctuations, the market remains relatively stable without widespread fear-driven divestment. This resilience could indicate underlying strength or a balanced market sentiment that may steer future price movements.

This analysis aligns with a separate report by crypto firm QCP Capital, which noted that the shallow sell-off in the crypto market following geopolitical tensions between Iran and Israel indicates sustained demand for risk-on assets.

In related news, BTC bulls will be relieved to learn that the defunct crypto exchange Mt. Gox has delayed its repayment until October 2025, potentially easing pressure on spot selling.

However, some analysts warn that BTC may face price capitulation due to tightening on-chain liquidity. At the time of writing, Bitcoin trades at $65,964, up 1.4% in the past 24 hours.

Samara Targets 1,000 Bitcoin Milestone

The proceeds will allow Samara to further expand and solidify its already robust balance sheet as we diversify into new emerging technologies through new fund investments. With Bitcoin as our primary treasury reserve asset, we also enhance our liquidity position with bond proceeds.

According to data from CoinGecko, MicroStrategy leads the global list of publicly traded companies purchasing BTC for their corporate treasury. As of October 14, MicroStrategy holds more than 252,000 BTC or approximately 1.2% of the total circulating supply.

Saylor has also been quite vocal about sharing ambitious Bitcoin price targets. In September 2024, the MicroStrategy CEO predicted that BTC could soar to as high as $13 million by 2045.

BTC Remains The Preferred Digital Asset Ahead Of ETH, SOL

Although Ethereum ETFs have also received regulatory approval, the second-largest cryptocurrency by market cap has not seen the same level of institutional adoption in corporate balance sheets.

In related news, Japan’s Metaplanet has also been working toward bolstering its Bitcoin reserves. In September 2024, the early-stage investment firm stated it had bought an additional $2 million worth of BTC. Bitcoin trades at $65,995 at press time, up 6.1% in the last 24 hours.

According to the State Council Information Office, China’s Finance Minister, Lan Fo’an, is expected to provide details on upcoming fiscal stimulus measures during a press conference on Saturday. These measures aim to stimulate economic activity in the country.

In addition, if the US Federal Reserve (Fed) decides to cut key interest rates further, it could increase investor appetite for riskier assets, including digital currencies known for their volatility.

Currently, prediction markets are speculating at least another 50 basis points (bps) cut in interest rates by the end of the year. Such a move would increase global liquidity and help BTC avoid a capitulation that could cause its price to crash into the high $40k range.

BTC Options Expiry Could Trigger Price Volatility 

Another factor that could impact Bitcoin’s price volatility is the $1.1 billion worth of 18,000 BTC options set to expire on October 11. At press time, the put-call ratio is 0.91, indicating a slight tilt toward put options.

For instance, crypto trading firm QCP Capital noted that Bitcoin’s swift recovery following the Iranian offensive against Israel indicated its strong demand among investors.

Similarly, Bitwise CIO Matt Hougan outlined three major factors that could help the BTC price “melt-up�?to a new all-time-high (ATH) of close to $80,000 in Q4 2024. BTC trades at $62,086 at press time, up 2.7% in the last 24 hours.

In a detailed thread on X about BTC price analysis, crypto analyst Cole Garner stated that capitulation might be on the horizon for the leading digital asset. Garner attributes the potential downturn to tightening on-chain liquidity.

In his analysis, Garner stated that “if China doesn’t ring that bell, the Fed or Japan should do the job,�?likely pointing toward the recent economic stimulus injected by the Chinese central bank in a bid to boost the country’s grim economic outlook. 

Another crypto analyst, Ali, seemed to echo Garner’s outlook, stating that Bitcoin is stuck in a descending parallel channel and runs the risk of sliding to channel lows of around $52,000. The analyst stressed that BTC must overcome the $66,000 level for a bullish breakout.

Can Bitcoin Hit New All-Time Highs In 2024?

Crypto analyst Carl Runefelt recently noted that BTC must overcome the $64,000 resistance level to trigger a rally in Q4 2024. Failure to break through this price level could lead to further downside.

Further, Bitcoin’s price finally turned green in October, giving bulls hopes of another “uptober�?for the asset, which was marked by significant price increases. BTC trades at $60,711 at press time, down 2.4% in the last 24 hours.

Factors To Propel Bitcoin To $80,000

The Democratic Party has disparate views on crypto, from Senator Elizabeth Warren’s (D-Mass.) “Anti-Crypto Army�?to Representative Ritchie Torres�?(D-N.Y.) deep support. The problem of the past four years is that the Warren wing has controlled policy and agency appointments, and that has created a hostile environment for the sector.

Hougan noted that the market expects another 50 bps rate cut from the Fed before year-end, along with additional Chinese fiscal stimulus. The crypto market could see a strong Q4 2024 rally if both occur.

Key Ingredient For The Rip To $100,000 BTC

In related news, CEO of crypto mining firm CleanSpark, Zach Bradford, recently opined that Bitcoin could reach as high as $200,000 in the next 18 months given the right conditions.

That being said, recent geopolitical escalations in the Middle East can adversely impact risk-on assets such as stocks and crypto in the short term. BTC trades at $61,999 at press time, down 1.4% in the last 24 hours.

Bitcoin’s low volatility ratio compared to gold cements the latter’s claim as a “safe haven asset.�?This came under the limelight last week when BTC slumped, and gold surged following Iran’s offensive against Israel.

Still A Long Way To Go For Bitcoin

That said, several crypto analysts are confident that Bitcoin will outperform the shining metal in the coming years. For instance, seasoned analyst Peter Brandt recently made an ambitious prediction that by 2025, BTC could see its price jump 400% relative to gold.

Similarly, in August 2024, VanEck CEO Jan van Eck stated that BTC could surge to $350,000 on the back of greater adoption.

Most recently, investment management firm BlackRock declared Bitcoin a “gold alternative�?due to its fixed supply and increasing investor confidence in its ability to tackle inflation and avoid value erosion during uncertain times.

On the contrary, billionaire Ray Dalio has expressed his opinion on the Bitcoin vs. gold narrative, saying that BTC will never fully replace gold. BTC trades at $62,790 at press time, down 2.3% in the last 24 hours.