Research Study
Q3 2024 Signals Report
A quarterly breakdown of key market metrics that could be affecting price and investor sentiment
by Fidelity Digital Assets
October 18, 2024 • 30 min read
Executive Summary
Bitcoin and ether have historically demonstrated strong levels of correlation, and the first half of 2024 was no exception. Following an eventful six months—including Bitcoin’s fourth halving, the launch of digital asset exchange-traded products, and Ethereum’s Deneb-Cancun upgrade—the assets closed the second quarter up 49% (BTC) and 51% (ETH). However, this tight correlation came to an end during the third quarter.
While bitcoin ended the quarter up an additional 6%—amounting to 55% year-to-date returns—ether fell roughly 34%. What potentially led to this divergence, and what may the remainder of 2024 hold for both assets?
We explore the potential answers in the latest edition of our quarterly Signals Report, assessing the drivers likely impacting both assets and the indicators that may help predict future market movements. Key takeaways highlighted in the report include:
- Bitcoin stands 11% below its all-time high set on March 13, 2024, whereas ether sits 45% below its all-time high from November 8, 2021.
- Bitcoin appears to be entering an “Acceleration” phase due to an increase in volatility throughout July, which has historically led to new all-time highs and blow-off tops.
- Following Ethereum’s Deneb-Cancun upgrade, transactions on Layer 2 platforms continue to be more cost-effective—a positive indicator for adoption and the network’s long-term future.
Access the full report now for a closer look into bitcoin and ether’s recent performance—and discover the team’s opinion for both assets as the market enters the final months of 2024.
The information herein was prepared by Fidelity Digital Asset Services, LLC (“FDAS LLC”) and Fidelity Digital Assets, Ltd (“FDA LTD”). It is for informational purposes only and is not intended to constitute a recommendation, investment advice of any kind, or an offer to buy or sell any asset. Perform your own research and consult a qualified advisor to see if digital assets are an appropriate investment option.
Digital assets are speculative and highly volatile, can become illiquid at any time, and are for investors with a high-risk tolerance. Investors in digital assets could lose the entire value of their investment.
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