- ETF volumes increased as the price of BTC rose on the charts
- However, the number of long-term owners fell despite the recent price increase
Bitcoin [BTC]The recent rise to the $65,000 level has created tremendous optimism among traders and investors alike. This despite the small correction that followed shortly afterwards. However, it is not only the crypto market where BTC is making waves. In fact, Wall Street is quite interested in Bitcoin.
Interest in ETFs is growing
According to Santiment, seven major Bitcoin ETFs recorded a combined trading volume of $5.65 billion, the highest volume since March 24.
On May 16, net inflows into US Bitcoin spot ETFs reached $257 million, indicating significant investor activity. Notably, Grayscale’s GBTC ETF saw net inflows of $4.6382 million in one day. Similarly, BlackRock’s ETF IBIT recorded net inflows of $93.7004 million, while Fidelity’s ETF FBTC recorded net inflows of $67.0829 million on the same day.
Source: sosowaarde
The interest of institutional investors from the traditional financial world could help inject massive amounts of liquidity into the Bitcoin market.
However, major investors in the crypto space, known as whales, showed no similar interest in BTC. AMBCrypto’s examination of Santiment’s data revealed that addresses holding 10-10,000 BTC slowed their accumulation. On the contrary, retail interest has increased. Investors who owned anywhere from 0.001 to 1 BTC found themselves accumulating BTC at a high rate.
The accumulation of BTC by retail investors could be positive for BTC in the long run as it will help make the overall network more decentralized.
Source: Santiment
How are the holders doing?
At the time of writing, BTC was trading at $66,314.84, with a higher price by 0.47% in the last 24 hours. Due to the recent price increase, the MVRV ratio for BTC has increased significantly in recent days. This indicated that most holders were starting to become profitable. As the price of BTC continues to rise, there is a good chance that profits will be taken in the future.
Read Bitcoin’s [BTC] Price forecast 2024-25
However, despite the price increase, a worrying trend has emerged in recent weeks. The long/short difference for BTC decreased significantly, indicating that the number of long-term holders accumulating BTC decreased and the number of short-term holders grew.
It is much more likely that short-term holders will react impulsively to market fluctuations, negatively impacting the price of BTC.
Source: Santiment