LUCKNOW (CoinChapter.com) — Long-term Bitcoin investors have started accumulating coins again after months of selling. This shift to re-accumulation comes as BTC price consolidates just below its all-time high reached in March 2024.
Bitcoin hit a new record price of $73,000 in early March. At that peak, long-term holders (investors holding over 6 months) were distributing a significant supply onto the market. This sell-side pressure from long-term investor profit-taking led to a 20.3% correction from the $73,000 high down to around $57,500 by late April.
This shallow correction from Bitcoin’s March peak indicates an absence of froth and unsustainably high prices during the initial run-up. This pattern resembles the healthy 2015-2017 bull cycle before Bitcoin’s exponential rise.
However, data now indicates that as BTC price has recovered back to the $70,000 level, long-term holders have started accumulating over the past month. Their aggregate Bitcoin holdings have grown by roughly 12,000 BTC since late April as they buy the dip.
Institutional Demand Surging Through Bitcoin ETFs
A resurgence of demand for Bitcoin ETFs is boosting this long-term holder accumulation. After $148 million in daily net outflows at April’s low of around $57,500, Bitcoin ETFs saw $242 million in daily net inflows last week.
This positive millions of inflow stands in stark contrast to the $32 million in typical daily sell pressure from miners. The ETF demand is nearly 8 times larger than this coordinated daily miner selling. It shows the substantial institutional buy-side demand returning to the Bitcoin market.
Percentage of Supply In Profit Signals New “Euphoria” Phase
A key on-chain metric is signaling that Bitcoin has entered a new “euphoria” phase after March’s sell-off. With 93.4% of Bitcoin’s circulating supply currently being held at an unrealized profit compared to spot prices, the cryptocurrency has crossed beyond the statistically significant 90% threshold.
This 90% supply in profit level has historically preceded prolonged uptrends in BTC price. In prior bull cycles, breaking above it kicked off a “pre-euphoria” phase where some long-term holders began taking profits.
Long-term holders tend to sell a portion of their holdings accumulated during bear markets. They do so in order to realize gains once price increases. As Bitcoin then pushes to new all-time highs, the true “euphoria” phase emerges.
As Bitcoin then pushes to new all-time highs, the “euphoria” phase kicks off with 6 to 12 months of choppy, sideways price action as the percentage hovers in the 80-95% range. The current euphoria regime is still relatively young at just 2.5 months old.
With such a large percentage of the Bitcoin supply being held profitably and the euphoria phase only just beginning, many analysts view the setup as ripe for further upside after this consolidation period concludes.
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