Bitcoin (BTC), Institutional Investor Sentiment Wanes Amid Fund Outflow Bomb... "Long-Term Holders Are Accumulating"

▲ Bitcoin (BTC)

Long-term holders of Bitcoin (BTC) have once again started accumulating amid the bearish market. However, with continued outflows from US spot Bitcoin ETFs, institutional investor sentiment remains defensive.

According to crypto media outlet FXStreet on July 2 (local time), Glassnode reported that long-term holders have returned to net accumulation after several months of distribution. Glassnode analyzed that the shift to buying by long-term holders, while Bitcoin trades around $60,000, is a sign of recovering investor confidence.

Glassnode stated, “While it’s too early to call it a full accumulation phase, the sustained return of long-term buying pressure is an encouraging sign that conviction is beginning to rebuild beneath the surface.” The buying intensity does not yet match the aggressive accumulation levels seen in past bull markets, but it indicates a trend where long-term investors are absorbing sell-offs from short-term participants.

The Bitcoin accumulation trend was not limited to long-term holders. Glassnode pointed out, based on the Bitcoin Accumulation Trend Score, that accumulation is broadening across various wallet groups. Strong buying activity was particularly observed among holders of less than 1 Bitcoin and entities holding between 100 and 1,000 Bitcoins.

Conversely, institutional fund flows remain cold. The 7-day moving average fund flow for US spot Bitcoin ETFs deepened back into negative territory after a temporary recovery in May, and June saw net outflows of $4.5 billion, marking the worst monthly record since their launch. BlackRock's IBIT experienced 9 consecutive trading days of redemptions, with outflows totaling $3.55 billion during that period.

Nicolai Sondergaard, Senior Research Analyst at Nansen, explained that June's ETF outflows stemmed more from macroeconomic uncertainty and competition for risk capital rather than a weakening of Bitcoin conviction. Sondergaard stated, “In mid-June, the SpaceX IPO absorbed billions of dollars in discretionary risk capital, and the first Federal Open Market Committee (FOMC) meeting under Chairman Warsh showed a hawkish shift, eliminating the possibility of short-term rate cuts.” He added that the on-chain and derivatives markets are giving different signals for the same market, and the return of institutional funds in July is likely to be determined by macroeconomic indicators.

[Article Key Summary]

-Long-term Bitcoin holders have returned to net accumulation after several months of distribution.

-US spot Bitcoin ETFs recorded a net outflow of $4.5 billion in June, delaying the recovery of institutional investor sentiment.

-Nansen suggested macroeconomic uncertainty and competition for risk capital, rather than weakening Bitcoin conviction, as the primary reasons for ETF outflows.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*