Key Points
- Long-term Bitcoin holders are reaccumulating for the first time since December 2023.
- Market indicators suggest that buy-side demand is returning.
Long-term holders of Bitcoin are beginning to re-accumulate. This is the first time this has happened since December 2023, after several months of selling.
Bitcoin Consolidation and Reaccumulation
Bitcoin is consolidating just below its all-time high, with long-term holders starting to re-accumulate. Analysts have observed a significant reduction in spending pressure from long-term holders over the past week. This shift back to accumulation patterns indicates that volatility might be necessary to trigger new sell-offs.
Market indicators are pointing to a resurgence of buy-side demand. This is exemplified by the fact that last week, U.S.-based spot Bitcoin ETFs saw a net inflow of $242 million per day. Analysts have noted that this buy pressure is nearly eight times larger than the daily sell pressure by miners since the halving, which is $32 million per day, underscoring the significant impact of ETFs.
A More Controlled Bull Cycle
It’s worth noting that Bitcoin’s price movement over the past three months has been less volatile than previous bull cycles. Over the last three months, Bitcoin has registered weekly, monthly, and quarterly gains of over 3.3%, 7.4%, and 25.6%, respectively, on just five out of the last 90 days.
In previous cycles, such gains were achieved between 18 and 26 days, suggesting that the current market might be more measured compared to past bull markets. In the past 24 hours, Bitcoin’s price has fallen by 0.71% and was trading at $67,610 at 5:39 a.m. ET. The GM 30 Index, which represents a selection of the top 30 cryptocurrencies, increased by 0.55% to 144.92 in the same period.
