Key Points:
- Unmoved bitcoin supply has reached its highest point, indicating growing interest from institutional investors.
- About 70% of BTC’s circulating supply has been unmoved for at least a year, according to data from Ark Invest.
- BTC balance held on over-the-counter desks has reached a one-year high, suggesting increased institutional activity.
- Bitcoin holdings of crypto-related hedge funds and investment firms have significantly increased.
- Bitcoin Open Interest has surged, potentially indicating a shift in market dynamics and the influence of derivatives traders.
- Bitcoin’s liquidity has decreased, while Tether USDT’s liquidity has increased.
- Holding onto Bitcoin reduces its availability for trading and can lead to decreased liquidity.
- Insufficient liquidity may result in increased price volatility and pose risks for traders.
Hot Take:
The latest Bitfinex Alpha report reveals that institutional investors are showing strong interest and confidence in Bitcoin. The surge in unmoved bitcoin and increased BTC balance on over-the-counter desks suggest that institutions are actively embracing the cryptocurrency as a long-term investment. However, the rise in Bitcoin Open Interest and decreased liquidity raise concerns about market dynamics and potential price volatility. Traders should closely monitor these trends to make informed decisions.
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