June 3 Bitfinex Alpha | BTC enters accumulation period
On Bitfinex Alpha
After Bitcoin hit an all-time high of $73,666 in March, long-term holders (LTHs) sold significant amounts of BTC, increasing supply and leading to a period of price correction and consolidation. It appears that we are now nearing the end of this revision phase.
Over the past two weeks, Bitcoin ETFs have seen a resurgence in demand, recording net inflows of $136 million per day, more than four times the daily selling pressure of $32 million after miners halved.
Moreover, over the past month, exchange holdings of Bitcoin have been decreasing and new accumulation addresses are also increasing. Additionally, LTH, which sold a significant portion of its holdings at the peak, is now re-accumulating Bitcoin for the first time since December 2023. This trend reflects long-term bullish sentiment among holders.
Solana’s DeFi ecosystem is experiencing rapid growth, evident in lending, liquid staking, and perpetual markets. Solana boasts a Total Value Locked (TVL) of $4.78 billion and NFT 24-hour trading volume of $1.8 million. Additionally, Solana now leads all blockchains in stablecoin transaction volume. Solana’s resurgence is due to the advantages it offers over other blockchains in terms of transaction throughput per second and scalability. Both Solana and Ethereum continue to grow, but Solana’s rise is notable. By TVL, Solana ranks second in terms of decentralized transaction volume by chain, despite being four places behind Ethereum. Blockchain.
Macroeconomics had mixed views on U.S. consumer confidence. While the Conference Board reported an unexpected increase, the University of Michigan’s sentiment index showed a sharp decline. However, GDP growth in the first quarter was more pronounced, missing expectations with a revised 1.3% growth rate to reflect lower consumer spending and lower inflation.
It is clear that consumer spending is slowing due to higher interest rates and reduced fiscal support, with the PCE price index stabilizing in April and personal savings rates remaining low. The possibility of a Federal Reserve interest rate cut is expected later this year.
There were many positive developments in cryptocurrency news last week, including Tether investing up to $150 million in Bitcoin miner Bitdeer to expand its operations and strengthen its position in the mining sector. New York Stock Exchange and CoinDesk The index will launch a cash-settled Bitcoin index option, strengthening its digital asset offerings and risk management tools. Franklin Templeton, VanEck and Invesco Galaxy are also preparing to launch a spot Ether ETF, pending SEC approval.
On the topic of ETFs, BlackRock’s iBIT has surpassed GBTC to become the largest Bitcoin ETF, attracting the attention of institutional investors due to its high trading volume and low fees.
Happy trading!