Renewed institutional demand has swung sentiments from negative to positive in a couple of days, leading to increased Bitcoin ($BTC) buying pressure.
Following filings for spot Bitcoin ETFs by some of the world’s top fund management giants, Bitcoin embarked on an upward trajectory, hitting $30,645 yesterday. BTC has now recorded a 4.5% price surge in the past 24-hours and a whooping 20.6% in the last one week.
The current market atmosphere has led Gemini co-founder Cameron Winklevoss to believe that there is currently a significant opportunity to accumulate Bitcoin before the launch of ETFs. He terms this period ‘The Great Accumulation’. He further explained that the buying window is closing rapidly.
Bitcoin whales are accumulating
On-chain data shows that whales are seizing the opportunity to increase their holdings. Wallet addresses holding between 1k to 10k bitcoins accumulated more than 131.6k since the first week of April according to data from Santiment. This represents the highest amount they have accumulated in the last seven months.
This came on the back of earlier reports by Santiment that Bitcoin whales were buying an average of $26million worth of BTC daily.
Retail traders hold their bags tight
According to on-chain data, retail traders are displaying strong hodling behaviour amid the intensifying race for the first authorised spot Bitcoin ETF. The total amount of Bitcoin held in exchange reserves has dipped below two million for the first time since 2018. This decline in bitcoin held on exchanges typically signifies that individuals are opting to store their Bitcoin in self-custodial wallets rather than trading them for fiat.
Traders have once again embraced extreme optimism in the market, bouncing back from the SEC-related challenges and the post-FOMC meeting panic dump of last week. This dump caused Bitcoin to trade below the $25,000 mark for the first time in three months. However, the current sentiment indicates a renewed sense of confidence and positive outlook among traders.
The fear and greed indicator is now tilting towards greed. Compared to the 47 last week, it is now 65, indicating bullish sentiments.
Five Bitcoin ETFs in Five Days
Institutional interest is ramping up again as Wall Street reinforces its efforts to bring Bitcoin to its institutional clients and investors. After a series of unsuccessful applications for a spot Bitcoin ETF, major fund management companies are giving it another shot.
Leading the way is BlackRock. The world’s largest asset management company filed for a spot Bitcoin ETF with Coinbase Custody to act as the trust’s custodian.
Invesco Limited and WisdomTree investments reapplied after having earlier applications rejected. Reports this week strongly suggest that Fidelity Investments will follow closely with an application of theirs.
Valkyrie are looking to add another Bitcoin ETF under their belt after they filed for a spot Bitcoin ETF. The crypto-focused asset manager has recorded success in previous filings for futures and miners ETF.