PANews reported on April 1 that according to the latest report from Bitfinex, after the sharp price increase in March, Bitcoin reached a new all-time high (ATH), and the price of Bitcoin is expected to enter a period of range trading, although similar time points in the cycle are more volatile. On-chain data shows that long-term holders have sold after the ATH, although the scale is smaller than the previous bull market peak, as previously dormant supply enters the market, this has led to increased volatility. It is calculated that more than $2.6 billion in profits have been captured through on-chain transactions, of which 40% belongs to the long-term holder group. Further analysis shows that buying behavior is also occurring and represents a bottom as new investors enter the market and existing investors increase their positions in the belief that the market can rise further.
Spot Bitcoin ETFs have also become an important support for the market. Last week, net inflows into ETFs resumed again, and passive demand continued. At the current inflow rate, the demand for Bitcoin is about twice the value of Bitcoin produced by mining. Combining all these price dynamics, Bitfinex believes that in the current environment, we will see a range-bound market.
