Bitcoin (BTC) Enters Accumulation Phase Amid Market Adjustments

Bitcoin
(BTC)
has
entered
an
accumulation
phase
following
its
substantial
price
correction
and
consolidation,
according
to
Bitfinex
Alpha.
After
reaching
a
new
all-time
high
of
$73,666
in
March,
long-term
holders
(LTHs)
offloaded
significant
amounts
of
their
BTC,
leading
to
an
increased
supply
and
subsequent
price
corrections.

Market
Dynamics
and
Bitcoin
ETFs

Recent
weeks
have
shown
a
resurgence
in
demand
for
Bitcoin
ETFs,
with
net
inflows
averaging
$136
million
per
day,
significantly
surpassing
the
$32
million
daily
sell
pressure
from
miners
post-halving.
Exchange
reserves
of
Bitcoin
have
been
declining
while
new
accumulation
addresses
have
increased.
LTHs
who
previously
sold
at
the
market
peak
have
started
re-accumulating
Bitcoin,
indicating
long-term
bullish
sentiment.

Solana’s
DeFi
Ecosystem
Growth

Solana’s
DeFi
ecosystem
is
witnessing
rapid
growth,
with
significant
activity
in
lending,
liquid
staking,
and
perpetual
markets.
Solana
now
boasts
a
Total
Value
Locked
(TVL)
of
$4.78
billion
and
24-hour
NFT
trading
volumes
of
$1.8
million.
Solana
is
also
leading
in
stablecoin
transaction
size
among
blockchains,
thanks
to
its
high
throughput
and
scalability.
Despite
trailing
behind
Ethereum
in
TVL,
Solana
ranks
second
in
decentralized
exchange
volumes
by
chain.

Macro
Economic
Indicators

In
the
broader
economy,
differing
views
on
US
consumer
confidence
have
emerged.
The
Conference
Board
reported
an
unexpected
increase,
while
the
University
of
Michigan’s
sentiment
index
saw
a
sharp
decrease.
GDP
growth
for
Q1
was
below
expectations
at
a
revised
rate
of
1.3
percent,
reflecting
reduced
consumer
spending
and
lower
inflation.

High
interest
rates
and
reduced
fiscal
support
are
slowing
consumer
spending,
evident
from
the
stabilisation
of
the
April
Personal
Consumption
Expenditures
(PCE)
price
index,
with
personal
saving
rates
remaining
low.
Potential
rate
cuts
by
the
Federal
Reserve
are
anticipated
later
in
the
year.

Notable
Developments
in
Crypto

Tether
has
committed
up
to
$150
million
to
Bitcoin
miner
Bitdeer
for
expanding
its
operations.
Additionally,
the
New
York
Stock
Exchange
(NYSE)
and
CoinDesk
Indices
are
set
to
launch
cash-settled
Bitcoin
index
options,
enhancing
digital
asset
offerings
and
risk
management
tools.
Franklin
Templeton,
VanEck,
and
Invesco
Galaxy
are
preparing
to
launch
spot
Ether
ETFs,
pending
SEC
approval.

BlackRock’s
iBIT
has
become
the
largest
Bitcoin
ETF,
surpassing
GBTC,
with
higher
trading
volumes
and
lower
fees,
attracting
institutional
investors.

For
more
detailed
insights,
please
visit
the
official
Bitfinex
Alpha
[source](https://blog.bitfinex.com/bitfinex-alpha/bitfinex-alpha-btc-enters-accumulation-period/).

Image
source:
Shutterstock

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