- Interest in Bitcoin ETFs had grown as ETF volumes reached new highs.
- Interest in whales also increased, but the price of BTC remained stagnant.
Bitcoin [BTC] has seen a slump in recent days as its price has remained around the $64,000 level for quite some time.
Institutional importance
According to Santiment data, there is positive movement for BTC going forward. The combined daily trading volume of Bitcoin ETFs recently hit a four-week high, reaching $3.62 billion.
This increase in activity includes leading Bitcoin ETFs such as GBTC, IBIT, FBTC, ARKB, BTCO and HODL.
This comes amid a five-week period of unpredictable sideways movements in the broader cryptocurrency market.
In light of this stagnation, the healthy trading activity in Bitcoin ETFs can be taken as a bullish sign.
It suggested that investors remain confident in Bitcoin’s long-term potential and use ETFs as a way to gain exposure to the cryptocurrency.
The high trading volume in Bitcoin ETFs highlights their growing popularity as an easier entry point for investors unfamiliar with cryptocurrencies.
This could point to broader adoption of Bitcoin as ETFs remove the barriers to directly buying and holding the digital asset.
Source: Santiment
Furthermore, this bullish sentiment is reflected in on-chain data, which shows a huge spike in the number of whales Bitcoin has accumulated over the past two months.
This suggested that not only were new investors entering the space, but established players were also increasing their exposure, possibly anticipating future price increases.
Source:
How are investors holding up?
At the time of writing, BTC was trading at $64,334.93 and the price had fallen 3.44% over the past 24 hours. The MVRV ratio had also fallen during this period, indicating that most addresses were not profitable.
Moreover, the difference between Long and Short had widened despite falling prices.
A declining Long/Short difference indicated that the number of long-term investors exceeded the number of short-term investors in recent days.
These holders are less likely to sell their holdings and can help BTC maintain its current price level.
Source: Santiment
Read Bitcoin’s [BTC] Price forecast 2024-25
The general interest in the Bitcoin ecosystem would also play a major role in the growth of the king coin.
Particularly in recent days, the number of daily active addresses on the network has decreased significantly during this period.
Source: Santiment