According to a recent report prepared by Coinbase Institutional and Glassnode, crypto markets are becoming increasingly liquid. The report is titled “Q4 2024 Guide to Crypto Markets.”
Rising Trading Volumes
The research highlights that the increase in on-chain activities and trading volumes signifies that crypto markets are becoming more liquid and sophisticated. According to the report, Bitcoin’s monthly trading volume averaged $2 trillion since the beginning of the year, which marks a 76% increase compared to last year.
Furthermore, it was noted that open positions in Bitcoin 
$106,496 derivatives averaged $44 billion in Q3 2024, clarifying that “BTC positioning has become clearer after significant long liquidations.”
“BTC positioning has been clarified after significant long liquidations.”
Market Dynamics
The crypto market showed potential for a bull run at the beginning of 2024, with Bitcoin surpassing $73,800 to reach a new all-time high. The approval of spot Bitcoin exchange-traded funds and Bitcoin’s fourth halving led to increased trading activity and positive sentiment.
However, as the major digital asset and the overall crypto market enter the last quarter of the year, substantial movements have remained largely limited. Bitcoin has risen by 54% since the beginning of the year, while Ether has recorded a 13% increase during the same period.
Future Outlook
Researchers at Coinbase Institutional and Glassnode believe that the market’s lack of direction may partly be attributed to upcoming uncertainties, such as the U.S. elections. They stated, “The lack of price movements does not indicate that crypto is stagnant. On the contrary, we have seen sufficient signs that the market has matured dramatically this year.”
Moreover, they added, “As the markets remain sideways, sentiment has shifted from greed to fear, which may set the stage for the next rally.”
The maturation of crypto markets and increased liquidity are considered positive signals for future developments. Investors expect the market to behave more steadily with deepening liquidity.
These developments indicate that crypto assets are increasingly being adopted by institutional investors. The rising liquidity in the market contributes to more controlled fluctuations.
These dynamics in the crypto markets encourage investors to develop new opportunities and strategies. The maturation of the market enhances the potential for long-term growth.
Finally, these developments in the crypto markets are seen as a significant turning point for industry players. Increasing liquidity and rising trading volumes signal that the market is progressing toward sustainable growth.
