Market activity around Bitcoin (BTC) has increased since the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC).
A recent market report from Bitfinex reveals that there has been a slight increase in the amount of BTC in circulation. Long-term investors are holding onto more assets, leading to a growth in Bitcoin’s price above $46k.
Bitcoin Miners Putting Pressure on BTC Price
In Bitfinex Alpha, it is explained how Bitcoin miners have been exerting pressure on the BTC price. Miners are driven by the price surge and the need to realize capital in order to upgrade mining equipment ahead of the Bitcoin halving.
Factors Affecting Bitcoin Supply and Price
The report delves into metrics such as “Supply Last Active” to show the circulating supply of Bitcoin over different periods. The approval of spot Bitcoin ETFs has played a significant role in increasing circulation as dormant Bitcoin is reintroduced to the market.
The period leading up to the ETF approval date witnessed massive inflows into the market, with analysts predicting surging prices.
Analysts Point to Bitcoin Value Days Destroyed As Supply Shifts
The Value Days Destroyed (VDD) metric is used to project when Bitcoin’s price is heightened in bull cycles. Currently, there is an increase in VVD, indicating that some investors are offloading their assets. However, the liveliness metric remains at multi-year lows, suggesting that many holders are keeping their assets for higher profits.
The Impact of Halving on Bitcoin Price
The upcoming halving is another factor causing recent Bitcoin price movements. Miners introducing their reserves to exchanges indicate a willingness to sell off assets before the halving event.
Overall, market activity has been influenced by the approval of spot Bitcoin ETFs, with long-term holders moving their assets and miners putting pressure on the BTC price. These factors, along with the upcoming halving, are contributing to recent price fluctuations.
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