Bitcoin long-term holders have started a new round of hoarding since December 2023 after experiencing several months of selling. This round of bull market is also slightly milder than previous ones…
After hitting a historical high of $73,000 in mid-March this year, Bitcoin experienced a long period of correction, dropping to nearly $56,000 at its lowest. However, with the improved expectations of a rate cut by the Federal Reserve and the approval of the Ethereum spot ETF by the U.S. Securities and Exchange Commission (SEC), the market seems to be warming up. Bitcoin once again surpassed $70,000 on Monday (28th). At the time of writing, Bitcoin hit a low of $67,130 at midnight today, and has rebounded to around $68,000, with a 1.13% decrease in the past 24 hours.
Market returns to hoarding mode
Against this backdrop, the cryptocurrency data platform Glassnode released a research report on Monday (28th) indicating that Bitcoin long-term holders have started a new round of hoarding for the first time since December 2023, after experiencing several months of selling: Bitcoin is currently slightly below its historical high and continues to consolidate. Long-term holders have started to accumulate Bitcoin again for the first time since December 2023. In addition, Glassnode analysts also pointed out a market indicator of the return of buyer demand, namely, the net inflow of Bitcoin spot ETF: we can see this from the flow of funds in the Bitcoin spot ETF. Throughout April, the funds of the ETF were in a state of outflow. However, last week, the net inflow of funds into the ETF reached an astonishing $242 million per day, indicating that buyer demand has returned to the right track, highlighting the market influence of the ETF.
This round of bull market is more moderate
In the past three months, the price trend of Bitcoin has been more moderate and steady compared to previous bull markets: in the past three months, the weekly, monthly, and quarterly gains of Bitcoin have exceeded 3.3%, 7.4%, and 25.6% respectively. In the past three months, there were only 5 days with larger gains than the above, whereas in previous bull markets, these numbers could reach between 18 and 26 days, indicating that the current bull market may be more cautious and steady compared to historical bull markets.
BlackRock's two funds invested in IBIT in Q1
It is also worth noting that, according to "The Block," the asset management giant BlackRock's two funds, the Strategic Income Opportunities Fund and the Strategic Global Bond Fund, bought BlackRock's IBIT in the first quarter of this year, with values of $3.6 million and $486,000 respectively. It is understood that both the Strategic Income Opportunities Fund and the Strategic Global Bond Fund, managed by Rick Rieder, BlackRock's global fixed income investment chief, have asset management scales of $24 billion and $512 million respectively, with investment proportions in IBIT of 0.015% and 0.095%.
Although the current proportion is not large, it shows the trend of institutions entering the market, and as long as the investment proportion rises to just 1%, it can bring hundreds of millions of dollars in funds to BTC.
In the middle of this month, with the approval of the ETH spot ETF, Ethereum briefly surpassed Bitcoin in popularity, and all the market funds flowed into Ethereum. With this momentum, Ethereum surged from around $3,000 to nearly $4,000, and the bullish trend was unstoppable. In the past two trading days, as positive news gradually settled, Ethereum also began to experience a correction. However, in this bull market, Ethereum's rise and fall are fast.
It is normal to have a correction after a sharp rise, and there are also signs of a technical correction. Moving away from the news, from a technical perspective, Ethereum is focusing on the support level of $3,700, which is also the watershed for determining the short-term bullish or bearish trend. In this trend, it is better to short at high levels rather than blindly chase long positions, especially as Ethereum's popularity is gradually leaning towards Bitcoin. At the same time, Bitcoin is also in a period of pressure adjustment.
After the previous speculation on Bitcoin, this period is about speculating on Ethereum, but it's the same routine. Remember two things: first, buy the expectation and sell the fact. Can you outplay the house? Will the house tell you if they are secretly unloading? Look at the recent Ethereum, the rise and fall are fast.
Ultimately, all market trends will return to the technical aspect. Look at the recent mainstream coins led by Bitcoin, they are repeatedly washing the plate, not to mention the altcoins. In 2021, it was Ethereum that led to the bull market of altcoins, but now? Except for the high popularity and active funds of Pepe, Sol, and Doge, the rest are basically speculative! You can search on Weibo: the wealth-bringing Jin Yuhui!
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