The bullish consolidation for Bitcoin above $30,000 continues to pile on. The longer it maintains a higher position, the further its positive sentiment improves. It seems like a matter of time before BTC registers a new yearly high of around $35,000. According to Coinshares, major BTC products are also experiencing bullish-bias activity. The report indicated that most institutional investors have been focusing on BTC over the past two weeks. Over $300 million in inflows were registered for the investment products.
James Butterfill, Coinshares’ Head of Research, also highlighted minor inflows for certain altcoins. Ethereum, Cardano, and Polygon led inflows but the primary focus remains Bitcoin.
Is there any confirmation of the Bitcoin Accumulation Trend?
While it is always difficult to pinpoint which large-scale players have their hand in the honeypot, the following chart may help.
The above chart refers to Bitcoin fund holdings. It describes or underlines the amount of BTC held by institutions, hedge funds, firms, and private crypto trusts. As observed, it registered a large spike over the past week, which can be inferred as a rise in institutional involvement. Now, combining these observations, accumulation comes into the picture. The chart illustrated a significant rise in BTC holdings. While it may have taken place during the price rise and not beforehand, it demonstrated opportunity.
Historically, most shrewd investors come into the market with a healthy appetite for risk. The current rise in fund holding suggested that confidence is currently high. It is important to note that there will be sellers in the game as well. The rise in BITO futures or short-bitcoin, remained the 2nd best-performing product in 2023.
Who is Buying? Who is Selling?
Bitcoin trends often snap traditional trading hours into splits. Earlier, U.S. markets used to buy while Asian used to sell and vice versa. However, the narrative has been very collective over the past month.
Since the Blackrock ETF fiasco, trades in the U.S., EU, and Asia have collectively played a role in front-running BTC prices. The involvement has been synonymous, and it mirrors earlier bull markets from 2020-2021. This is a major positive development, as it conveys a combined market shift. Data suggested that Asian markets are currently witnessing ~38,000 BTC/month in net outflows. Buying pressure is noticeably less in the U.S. with ~3300 BTC/month. With retail and institutions both chiming in with activity, the stage is set for Bitcoin to trigger its next bullish leg in Q3, 2023.
Historically, Bitcoin has registered positive returns 75% of the time since its inception in the month of July. 2023 might continue to improve this statistic.