Bitcoin Long-Term Holders Accumulate 7% Daily, Institutional Inflows Surge 84.17 Million

Bitcoin’s long-term holders, or LTHs, have been exhibiting a growing confidence in the asset, with accumulation trends since February 25, 2023, showing a steady increase. The 30-day accumulation rate is near 6%, indicating a noticeable shift in sentiment. The daily accumulation rate has been averaging around 7% since February, suggesting an insatiable appetite for Bitcoin among long-term holders.

The proportion of Bitcoin supply in the hands of long-term holders versus short-term holders has been undergoing a significant shift. This measure, which hit a trough in early February, has been climbing steadily since then. As of March 14, it has been ascending even faster, at a compounded 0.42% per day on average. If this trend continues, this ratio is on pace to touch its 2025 target of 5.53 once again, highlighting a long-term tuned-in audience for Bitcoin.

Institutional investors are also showing increased optimism in Bitcoin. U.S. spot Bitcoin exchange-traded funds (ETFs) have experienced significant net inflows over the past week. On March 24, Bitcoin ETFs saw a net inflow of $84.17 million, marking seven consecutive days of net inflows. The ETF with the largest single-day net inflow was Fidelity’s Bitcoin ETF (FBTC), which saw an inflow of $82.85 million on the day. This sequence of reassuring inflows indicates that Bitcoin is being warmly welcomed by institutional investors, unlike the tentative embrace seen in early 2018.

Data regarding Bitcoin’s long-term holders reflect a larger trend in the market, showing that these holders are not only sticking around but also seem to be in accumulation mode. Long-term holders, who purchase Bitcoin with a multiyear time horizon, have been largely unfazed by short-term price volatility. This signals confidence in the notion that Bitcoin has a long-term path of appreciation ahead. The current market dynamics present an opportunity for these holders to add to their positions at comparatively lower price points than the peaks seen in 2021.

The metric of long-term holder accumulation is crucial in understanding current market sentiment. When accumulation is flat or decreasing, it indicates a lack of confidence in the market. Conversely, when accumulation is happening at a significant rate, as it is now, it shows a decent amount of confidence. The current accumulation rate increasing at about 7% per day is quite significant and suggests a bullish outlook for Bitcoin.

Examining the larger Bitcoin market, there is a clear overall optimism. The picture painted by Bitcoin’s long-term holders and the recent inflows of institutional capital is one of a Bitcoin that continues to be in demand. HODLing has historically been a stabilizing and price-supporting force in the Bitcoin market. The latest influx of capital via Bitcoin ETFs is another vote of confidence in Bitcoin as a meaningful part of the modern investor’s toolkit.

As the long-term holder accumulation rate rises and institutional interest grows, Bitcoin’s market dynamics may be shifting in favor of these holders. If this trend continues, the long-term holder accumulation rate could play a more significant role in reducing Bitcoin price volatility and providing price support in downturn markets. The increase in spot Bitcoin ETF inflows suggests that substantial institutions see Bitcoin as more than just a speculative asset, viewing it as a store of value—”like digital gold.” This reinforces the idea that Bitcoin is now firmly a part of the traditional financial landscape.

Considering these factors, the future of Bitcoin looks bright. The present-day accumulation by a diverse group of long-term holders, including a number of institutions, serves as a signal to the rest of the market that a more favorable environment for Bitcoin might be on the horizon. If this environment continues to develop, Bitcoin could be set up for significant price appreciations. The mounting rate of accumulation by long-term Bitcoin holders, together with the consistent inflows into U.S. spot Bitcoin ETFs, shows that both institutional and retail investors are remaining positive on the digital asset. The combination of these two groups continuing to invest in Bitcoin, plus the accelerating pace of this accumulation, undoubtedly sets up an increasingly bullish chart for the cryptocurrency.