Bitcoin appears to have found a solid bottom, with dip hunters emerging among institutional and individual investors.
Available data suggests significant accumulation by self-custodial holders, while exchange-traded funds (ETFs) are also starting to see modest inflows after a period of sell-off.
A flurry of bargain-hunting activity coincided with Bitcoin’s slide into the $25,000 range, a major test for the cryptocurrency’s newly established bull run.
according to Analyst Wu Weilia strong vote of confidence from investors at these levels reinforces the market’s overall upward trend.
Lots of overlays on Sats
“We’re witnessing the kind of peat-moss bidding behavior that anchors the secular bull market,” said Scath Arken, head of digital asset strategy. Nasdaq-listed Bitwise Asset Management.
“The market has proven that it can absorb large sell-side liquidity events at key technical levels without missing a beat.” The most eye-opening statistic in Bitcoin’s latest price drop comes from a blockchain data analyst glass node.
Their on-chain monitoring found a significant increase in the number of Bitcoin purchases from exchanges by small investors and self-managed “civilian” buyers.
Glassnode’s “Bitcoin Non-Zero Addresses” indicator, which tracks the number of wallets holding a non-zero amount of BTC, has surged this month.
Amid the recent sell-off, more than 100,000 new participants poured into the asset, continuing a trend that started during the FTX explosion last year.
While the masses are flocking to the Bitcoin blockchain in small groups at a time, the smart money crowd hasn’t stopped adding more risk. After a brief period of large outflows in early March, Bitcoin ETF products are seeing a return of renewed demand from institutional investors, hitting the buy side.
Institutions Buy Bitcoin ETF
Bellwether Bitcoin ETF Soak New buyer capital inflows last week were approximately $30 million, the largest inflow since January.
Other leading ETFs such as ProShares Bitcoin Strategy ETF Prices have also seen a comeback after a period of relentless sell-off, driven in part by tax losses in late 2023.
“You never want to read too much into short-term money flow data because there’s always quite a bit of noise in the signal,” Ananda Ridgewood said. Wedbush Securities.
“That being said, we are certainly encouraged to see fast money quickly returning to support this market as we reset to higher levels.”
elsewhere, On-chain data analysis It was also noted that a broader group of institutional players, known as the “wealthy whales” group, have re-accumulated Bitcoin. According to researchers moodThe whale wallet, which controls more than 10,000 BTC, has been expanding rapidly.
“Whales have been pursuing price-insensitive strategies with laser-focused determination. Their buying has offset the more unsettling moves in weaker hands during periods of volatility,” it added.
With regulatory frameworks slowly being put in place and adoption metrics steadily moving higher, Bitcoin appears poised to continue its price gains. This could cement its position as a true asset class to rival the traditional financial ecosystem.
