Mateo Greco, Research Analyst, Listed Digital Assets and FinTech Investment Business Finekia International (CSE:FNQ).
Bitcoin (BTC) ended the week at around $68,400, down just 0.8% from the previous week’s closing price of around $69,000. Throughout the week, BTC showed significant volatility, with a price range of 13.4%. The week started off strong with BTC surging to $72,000 on Monday. It then peaked above $73,000 on both Wednesday and Thursday, before reaching an all-time high of nearly $73,800 on Thursday.
Also on Thursday, BTC plummeted to $68,000 before rebounding to close around $71,400. Selling pressure continued on Friday and Saturday, with BTC falling to $64,700 before closing near $65,300 on Saturday. However, positive momentum returned on Sunday, nearly reversing weekly losses and closing at around $68,400.
Despite the volatility and price changes, the past week demonstrated continued strong momentum for the BTC Spot ETF, with net inflows recorded on every trading day. Net inflows for the week exceeded $2.5 billion, with net inflows exceeding $1 billion on Tuesday alone. Cumulative net inflows since its inception are currently approximately $12.2 billion.
BTC spot ETF trading volume is also on the rise, with total trading volume reaching $141.7 billion since inception, including around $28 billion in trades last week. This took his daily trading volume past his $5.5 billion mark last week, and his average daily trading volume has increased since its inception, now sitting at around $3.15 billion.
These numbers confirm that investment momentum from traditional finance to the digital asset space continues. Despite BTC price stabilization last week, demand is primarily coming from ETFs, while native digital asset investors are more active on the short side.
This trend is noticeable in the decline in BTC held by long-term holders, which refers to BTC that has not moved for at least 155 days. At the beginning of 2024, this supply was approximately 16.3 million BTC, but has gradually decreased and currently stands at approximately 15.1 million BTC. While this shift reflects traditional investors driving purchasing activity through ETFs, native digital asset investors who accumulated during the downtrend in 2022 and 2023 are now seeing higher profit-taking rates. The supply of long-term holders is decreasing.
Such behavior is characteristic of early bull phases, when long-term holders distribute assets to new investors. Analyzing past cycles, if the current market is trending up, this pattern is likely to continue until supply from long-term holders matches demand from new investors, which typically occurs at the peak of the cycle. coincides with the beginning of the downtrend phase.
Notably, BTC’s halving is approximately 1 month later, whereas previous cycles’ peaks have historically been 6 to 12 months later. If past patterns repeat, the peak of the current cycle could occur in late 2024 or early 2025.
Source: the-blockchain.com
