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▲ Bitcoin (BTC)
Long-term holders of Bitcoin (Bitcoin, BTC) have resumed accumulation amidst a bear market. However, with continued outflows from US Bitcoin spot ETFs, institutional investor sentiment remains defensive.
According to crypto-specialized media FXStreet on July 2 (local time), Glassnode stated that long-term holders have returned to net accumulation after several months of distribution. Glassnode analyzed that the shift to buying by long-term holders, while Bitcoin trades around $60,000, is a sign of recovering investor confidence.
Glassnode stated, “While it's too early to call it a full accumulation phase, the return of sustained long-term buying is an encouraging sign that conviction is beginning to rebuild beneath the surface.” Although the buying intensity does not yet match the aggressive accumulation levels seen in past bull markets, it indicates a trend where long-term investors are absorbing supply from short-term participants.
The Bitcoin accumulation trend was not limited to long-term holders. Based on the Bitcoin Accumulation Trend Score, Glassnode pointed out that accumulation is broadening across various wallet groups. Strong buying activity was particularly observed among holders of less than 1 Bitcoin and entities holding between 100 and 1,000 Bitcoins.
On the other hand, institutional fund flows remain cold. The 7-day moving average fund flow for US Bitcoin spot ETFs deepened into negative territory again after a temporary recovery in May, and net outflows in June amounted to $4.5 billion, marking the worst monthly record since their launch. BlackRock IBIT saw redemptions for 9 consecutive trading days, with outflows totaling $3.55 billion during that period.
Nicolai Sondergaard, Senior Research Analyst at Nansen, explained that the June ETF outflows stemmed more from macroeconomic uncertainty and competition for risk capital rather than a weakening conviction in Bitcoin. Sondergaard stated, “In mid-June, the SpaceX IPO absorbed billions of dollars in discretionary risk capital, and the first Federal Open Market Committee (FOMC) meeting under Chairman Warsh showed a hawkish shift, eliminating the possibility of short-term interest rate cuts.” He added that the on-chain and derivatives markets are sending different signals for the same market, and the return of institutional funds in July is highly likely to be dictated by macroeconomic indicators.
[Key Article Summary]
-Long-term Bitcoin holders have returned to net accumulation after several months of distribution.
-US Bitcoin spot ETFs recorded $4.5 billion in net outflows in June, delaying the recovery of institutional investor sentiment.
-Nansen suggested that the core reasons for ETF outflows were macroeconomic uncertainty and competition for risk capital, rather than weakened conviction in Bitcoin.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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