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Home»ADOPTION NEWS»Bitcoin investment inflows have reached $1 billion as long-term holders accumulate.
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Bitcoin investment inflows have reached $1 billion as long-term holders accumulate.

By Crypto FlexsMay 28, 20243 Mins Read
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Bitcoin investment inflows have reached  billion as long-term holders accumulate.
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Inflows into Bitcoin (BTC) investment products surpassed $1 billion last week, bringing total inflows to about $14.6 billion so far this year, according to CoinShares. This surge in investment is primarily due to institutional and long-term investors increasing their exposure to spot Bitcoin ETFs.

During the week ending May 24, Bitcoin exchange-traded products (ETPs) recorded inflows of $1.01 billion. Total inflows across all cryptocurrency investment products reached $1.05 billion, setting an all-time record of $14.9 billion so far in 2024.

Capital flow in cryptocurrency investment products. Source: CoinShares

CoinShares’ “Weekly Digital Asset Fund Flows” report, released on May 28, highlighted a 28% increase in weekly trading volume, reaching $13.6 billion. The cryptocurrency fund currently has $98.43 billion in assets under management.

The recent surge in buying and price rise was primarily driven by market expectations of the approval of a spot Ethereum ETF in the United States. Despite Bitcoin’s underperformance since the approval of Ether (ETH), continued inflows into spot Bitcoin ETFs appear to be significant.

Institutions invested nearly $1.057 billion in spot Bitcoin ETFs between May 20 and May 24, according to data from Farside Investors. Grayscale’s IBIT saw a dramatic drop in outflows for the week, reaching just $20.5 million.

Spot Bitcoin ​​ETF Flow Table. Source: Farside Investors

Bitcoin price remains within a certain range.

Popular analyst Daan Crypto Trades said that zooming out the BTC 8-hour chart over several months shows price action trading in a wide range from $59,095 to the all-time high of $73,800 on March 14.

According to popular analyst Daan Crypto Trades, Bitcoin’s price movement over the past few months has been within a wide range, from $59,095 to an all-time high of $73,800 on March 14. Minor deviations below this range were “quickly recovered,” he noted on May 27.

“$BTC has performed only to a similar extent to previous consolidations this cycle.”

BTC/USD 8-hour chart. source: Daan cryptocurrency trading

Analyst Rekt Capital observed that Bitcoin recently recovered above $70,000, forming “another regional high.” He predicted that Bitcoin would continue to consolidate between $60,000 and $70,000 and posted this chart on May 28th.

BTC/USD daily chart. source: Rect Capital

Independent trader John Albert noted on May 28 that Bitcoin has been trading in a tight range for the past few weeks. He suggested that BTC could see “further gains” if it breaks above the $68,000 upper limit, which is currently acting as immediate resistance.

Long term holders and whales accumulate.

Institutional and long-term investors are taking advantage of Bitcoin’s low volatility to increase their holdings. Glassnode’s “The Week On-chain” report published on May 28 found that long-term investors are re-accumulating coins for the first time since December 2023.

Glassnode analysts found that the total supply of long-term holders (LTH) has decreased by 12,000 BTC to 85,800 BTC per month. This is a significant decline from the peak of 519,000 BTC per month in late March, signaling a ‘cooling off period’ and a return to accumulation patterns.

Bitcoin LTH position change. Source: Glassnode

Trader and analyst Ali Martinez also pointed out that whale buying activity has increased in recent days, further supporting the whales’ accumulation trend.

BTC whale activity. Source: Ali Martinez

This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.