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.

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