Bitcoin ETFs see renewed demand, outpacing miner sell pressure.
Bitcoin (BTC) long-term holders have resumed accumulating, signaling a shift in market dynamics, according to the latest “Bitfinex Alpha” report. Bitfinex’s analysts indicate that the selling pressure from these investors has subsided, with a noticeable uptick in buying activity.
Image: Bitfinex/CryptoQuant
This change comes after Bitcoin reached a new all-time high of $73,666 in March, followed by a significant sell-off from long-term holders (LTHs). The sell-off led to an increase in supply on the open market, causing a period of price correction and consolidation. However, the trend appears to have reversed, with LTHs beginning to re-accumulate Bitcoin for the first time since December 2023.
The pattern of LTHs selling during bullish periods was prominent from early 2024 through April, as evidenced by reductions in the supply held by 1-year and 2-year-old Unspent Transaction Outputs (UTXO). Despite this, the supply of Bitcoin in UTXOs held for over three years has continued to grow, reflecting a long-term bullish sentiment among these holders.
Image: Bitfinex/CryptoQuant
Bitcoin exchange-traded funds (ETFs), which experienced net outflows throughout April, have seen a resurgence in buy-side demand. Notably, the US Bitcoin Spot ETFs recorded average daily net inflows of $136 million over the past two weeks, outpacing the daily sell pressure from miners post-halving.
Additionally, the exchange reserves of BTC have declined sharply since February, contributing to the recent price rally and potentially setting the stage for another surge in value.