You’re Back in Action: Long-Term Bitcoin Holders Accumulating Before the Next Bull Rally 🚀
Long-term Bitcoin holders are once again actively buying supply on the market, indicating the initiation of a re-accumulation phase before the next bull rally of the crypto. This resurgence hasn’t been observed since December 2023, just before Bitcoin skyrocketed to its historical highs. In this evolving landscape, Wall Street ETFs are also contributing to the reduction of potential selling pressure by continuously purchasing coins, marking the 15th consecutive day of positive outcomes recently. The bulls are making a robust return, gearing up for what lies ahead.
The Revival of Long-Term Bitcoin Holders: Ongoing Accumulation 📈
- After hitting a new all-time high of $73,777 on March 14, Bitcoin experienced a corrective phase and consolidation lasting about 45 days as long-term holders sold significant portions of coins.
- Now, it appears that the retracement phase has concluded, with long-term holders, also known as “long term holders” (LTH), back in the market to accumulate once again.
- Data reveals that the balance of all long-term holders has started increasing since May, pushing Bitcoin prices from $56,500 to over $71,000.
Key Insights into UTXO Holders 📊
- Holders with UTXOs aged between 1 and 2 years are reversing the trend from earlier months, increasing their purchases in recent weeks.
- Specifically, those holding UTXOs between 1.5 and 2 years are actively re-entering the market after a period of distribution.
- Within a month, approximately 350,000 coins, previously sold over three months, have been repurchased.
Impact of Exchange Reserves on Bitcoin Supply 📉
- Reserve coins on centralized exchanges have seen a significant decline since February, alleviating potential selling pressure and fueling the rally that led Bitcoin to new all-time highs in mid-March.
- The trend of decreasing reserves has intensified recently, hinting at a potential “supply shock” scenario as further supply dwindles.
A Wave of New Accumulation Addresses 🔄
- New accumulation addresses are emerging, actively buying Bitcoin and Ethereum in anticipation of an upcoming price surge.
- Despite recent stability, the increase in new accumulation addresses suggests a brewing pre-pump phase, paving the way for possible gains, possibly breaching $100,000 by year-end.
Positive Inflows in Bitcoin Spot ETFs: Institutional Interest on the Rise 💼
In addition to on-chain data, the inflows of spot Bitcoin ETFs have been notably positive in the past weeks, with Wall Street ETFs witnessing significant inflows averaging $136 million per day. The net inflows have outpaced new coin production by miners, creating a deflationary environment where more coins are taken out of circulation than produced. Notably, the ETFs have recorded positive inflows for 15 consecutive days, indicating a shift from a micro-capitulation phase to an accumulation phase.
Competition and Growth Among Bitcoin ETFs 📈
- iShares Bitcoin Trust (iBIT) ETF by BlackRock has surpassed Grayscale’s Bitcoin Trust (GBTC) in terms of Bitcoin holdings, showcasing growing institutional interest
- The competition between the top two Bitcoin ETFs in the US offers advantages such as reduced transaction costs, greater liquidity, and tighter bid-ask spreads, benefiting investors.
- Fidelity’s ETF holds a respectable amount of BTC on its balance sheet, reflecting the diverse options available to investors.
The Future Outlook 🚀
- As Bitcoin spot ETFs begin trading in Australia and institutional adoption continues to grow globally, the acceptance of Bitcoin as a recognized financial asset is on the rise.
- With new ETFs and trading platforms entering the market, institutional investors may drive the price of Bitcoin to new highs in the near future, signaling a promising journey ahead for the crypto space.
Hot Take: 💥 Bitcoin Bulls Are Gearing Up for the Rally Ahead
The revival of long-term Bitcoin holders accumulating supply, coupled with positive inflows in Bitcoin spot ETFs, hints at a bullish trajectory for the crypto market. As institutional interest intensifies and new accumulation addresses join the fray, the stage is set for a potential surge in Bitcoin prices. Stay tuned for the next chapter of the crypto saga, as market dynamics continue to evolve and pave the way for exciting developments ahead.
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