Bitcoin had a fantastic start to 2024, climbing to an all-time high of $73,800 and then starting to decline. That decline ended with a provisional bottom of $56,800, but after a brief climb, the digital currency is now under pressure again.
At the moment, on-chain data seems to be the culprit and the outflows from the Bitcoin ETFs are not helping either.
Bitcoin holders accumulate less
Since the halving, the bitcoin price has been in a difficult period and this seems to be partly due to disappointing accumulation of long-term investors (so-called holders or hodlers).
The chart below shows that all investor types purchased just over 10,000 bitcoin over the past 30 days, while miners produced 19,000 in that time frame.
James van Straten, CryptoSlate’s chief analyst, commented on this development, which he saw take place for the second time in recent months.
The last time we saw this was in March, after bitcoin corrected 17 percent between March 14 and 19.
After a period of intense accumulation until March, which eventually took Bitcoin to an all-time high, different types of investors started selling their coins.
This heavy “distribution” as we call it, has continued since then and doesn’t really seem to be changing at this point.
Too many investors on a virtual profit?
Too many bitcoin investors are currently looking for a virtual profit and that, combined with current sentiment, is a difficult statistic. This concerns 47.27 million addresses that are virtually in the green and have no difficulty in selling, as shown in the data below.
One place where not many investors are banking on a virtual profit is in the ETF arena. Despite this, the ETFs have struggled in the last two days, while there seemed to be a recovery in the two trading days before.
Last Friday, the Spot Bitcoin ETFs suddenly saw a significant inflow of more than 300 million, which continued on Monday with more than 200 million.
Then the price started to falter and the ETF flows immediately disappointed again. There was a small outflow on Wednesday, while yesterday there was a minimum inflow of $12 million on the boards.
