- Demand for Bitcoin ETFs is rising again, surpassing the push from miners to sell.
Long-term Bitcoin (BTC) holders have started to accumulate again, indicating a change in market dynamics, per the most recent “Bitfinex Alpha” report. According to Bitfinex’s analysts, there has been a discernible increase in buying activity, and the selling pressure from these investors has decreased.
Following a large sell-off by long-term holders (LTHs) of Bitcoin at its new all-time high of $73,666 in March, this change has occurred.
Due to an increase in supply on the open market brought about by the sell-off, there was a period of price correction and consolidation. For the first time since December 2023, LTHs are starting to reaccumulate Bitcoin, suggesting that the trend has turned.
From early 2024 through April, there was a noticeable trend of LTHs selling during bullish times, as shown by decreases in the quantity of 1- and 2-year-old Unspent Transaction Outputs (UTXO).
In spite of this, the amount of Bitcoin in UTXOs that have been kept for more than three years has increased, indicating a long-term positive attitude among these holders.
Exchange-traded funds (ETFs) that track bitcoin have seen a revival in buy-side interest after experiencing net withdrawals in April. Notably, during the previous two weeks, the US Bitcoin Spot ETFs had average daily net inflows of $136 million, surpassing the daily sell pressure from miners following the halving.
Furthermore, since February, Bitcoin’s exchange reserves have drastically decreased, which has helped fuel the current market boom and might pave the way for further price increases.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
