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