Bitcoin Success: Smart Retailers Bought $135.7M Of BTC Before The $4,000 Gain

Bitcoin (BTC) price is trending higher. As retail investors and BTC ETF accumulate $135m in Bitcoin at local price levels – here’s why.

Bitcoin prices have broken above the $66,000 level, adding over $4,000 following yesterday’s spike.

It also marks the first time in over three weeks that prices are trending at these levels. The last time was in late April. Bitcoin rose briefly before plunging to as low as $56,500.

(BTCUSDT)

While the spike is marked by euphoria amongst traders, something else shouldn’t go unnoticed. The success of the so-called retailers, most of whom are “weak hands,” so they say.

BTC Retailers Have Been Accumulating Bitcoin at Current Price Levels

Over the past 30 days, a telling trend has emerged. Taking to X, one analyst notes that retail investors, those holding between 0.1 and 1 BTC, have been on a buying spree, accumulating a staggering $135.7 million of the coin. 

(CryptoQuant)

This trend is impressive because retailers have been filling up their bags rather than capitulating, suggesting that they remain overly bullish, regardless of the dip from the all-time high.

They also appeared to be more rational and “wiser” when loading up on dips—essentially scooping up the coin at a huge discount—when prices slid to as low as $56,500 in early May. 

Now that prices are trending higher, more retailers will likely invest in Bitcoin. Though this might be FOMO-driven, there are far more solid fundamentals to explain the interest.

EXPLORE: How to Buy Bitcoin With Your Credit Card in 2024

Here’s Why Bitcoin Whales Are Doubling Down

The news that Millennium Management LLC, a large hedge fund with over $60 billion in assets under management (AUM), now holds roughly $2 billion of spot Bitcoin ETFs, translating to around 3% of its total portfolio, is massive. 

Breaking: Millennium Management LLC @MillenniumHF – a giant capital management hedge fund reports $2 billion in Spot Bitcoin ETFs ☝️👀

This is approx. 3.33% of their entire AUM.

We have a number people 3% is the allocation up from 1% to 2% now 3%. FOMO is coming. pic.twitter.com/T7eavjlzm3

— MartyParty (@martypartymusic) May 15, 2024

The trend was expected.  Before the approval of spot Bitcoin ETFs in 2023, there were speculations that many multi-billion firms were eager to allocate a significant portion of their AUM to this top-performing product.

Millennium joins a list of banks and hedge funds, gaining exposure to regulated spot Bitcoin ETFs, a mega boost of sentiment.

Amid this, and days after a slow day in spot Bitcoin ETF inflows, GBTC saw a positive flow, registering $27 million. 

On May 15, when prices spiked above local liquidation lines, there was $303 million in net inflows, translating to approximately ten days of mined BTC. 

In addition to the $27 million into GBTC, Fidelity received $131.3 million, while Bitwise got $86.3 million. Surprisingly, there was no inflow to BlackRock.

As inflation in the United States cools down, the odds of the Federal Reserve slashing rates will also increase, boosting the bullish narrative.

EXPLORE: Religion, Symbolism and Bitcoin – Putting Technology to Good Use With Gary Sheng

Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital

Disclaimer

Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
99Bitcoins may receive advertising commissions for visits to a suggested operator through our affiliate links, at no added cost to you. All our recommendations follow a thorough review process.

Read more