- Bitcoin investment inflows hit $1 billion as long-term holders and institutional investors increase their exposure to spot Bitcoin ETFs, bringing year-to-date inflows to $14.6 billion.
- Despite price consolidations, accumulation by whales and investors continues.
- Bitcoin’s price action over the last several months has been within a wide range stretching from $59,095 to the March 14 all-time high above $73,800.
Despite Bitcoin’s price remaining rangebound below its all-time high, investment inflows and accumulation by long-term holders point to ongoing institutional and whale interest. This report analyzes the latest data on Bitcoin investment flows, price action, and holder behavior.
Inflows to Bitcoin Investment Products Top $1 Billion
Inflows into Bitcoin investment products topped $1 billion last week, with total year-to-date inflows reaching approximately $14.6 billion according to CoinShares. This surge in investment is largely attributed to institutions and long-term investors increasing their exposure to spot Bitcoin ETFs.
For the week ending May 24, Bitcoin exchange-traded products (ETPs) registered $101 million in inflows. The total inflows for all cryptocurrency investment products reached $105 million, marking an all-time record of $9.9 billion for 2022 so far.
CoinShares’ Digital Asset Fund Flows Weekly report published on May 28 highlighted a 28% increase in weekly trading volumes, reaching $13.6 billion. Crypto funds now manage $98.43 billion in assets.
Bitcoin Price Remains Rangebound
Popular analyst Daan Crypto Trades said that when the BTC 8-hour chart is zoomed out over several months, it reveals that price action has been trading in a wide range stretching from $29,095 to the March 14 all-time high above $73,800.
According to Rekt Capital, Bitcoin’s recent recovery above $70,000 formed another local top. He predicts Bitcoin will likely continue consolidating between $60,000 and $70,000.
Independent trader John Albert noted Bitcoin has been trading in a tight range for the past few weeks. He suggested BTC could see further gains if it breaks above the upper limit of $68,000, currently acting as immediate resistance.
Long-Term Holders and Whales Accumulate
Glassnode’s The Week On-chain report indicated that long-term investors are re-accumulating coins for the first time since December 2021.
Glassnode analysts found the aggregate supply from long-term holders (LTHs) has dropped by 12,000 BTC to 85,800 BTC/month. This signals a return to accumulation patterns.
Trader and analyst Ali Martinez also noted increased buying activity by whales recently, further supporting the accumulation trend.
Conclusion
Despite consolidating below its all-time high, data shows Bitcoin accumulation continues, driven by significant inflows into Bitcoin investment products and increased holdings by long-term investors and whales. This points to ongoing institutional and whale interest in Bitcoin.
