Crypto News

Bitcoin $BTC Witnesses Strong Accumulation Streak Amid ETF Trends, Positions For Upward Movement 

Bitcoin is currently experiencing one of its most notable accumulation streaks in nearly three years, as indicated by the Accumulation Trend Score remaining near 1 for the past four months.

This sustained trend reflects a growing confidence among larger entities in the Bitcoin market, signaling positive sentiment.

Despite recent drops, Bitcoin ETFs continue to maintain significant trading volume, with ARKB leading the pack closely followed by FBTC. While the long-standing Grayscale Bitcoin Trust (GBTC) has witnessed a decline, other ETFs have seen robust activity.

On January 31st, the top seven ETFs recorded a volume of $1.38 billion, marking the second lowest day since SEC approvals in January 10.

Historically, a high ratio of crowd discussions around Bitcoin has been associated with fear; however, since mid-2023, the sentiment has shifted towards greed, fueled by optimism surrounding ETFs.

Post SEC Bitcoin ETF Approval Records

Three weeks post-SEC approval of Bitcoin ETFs, the indicator reflecting Bitcoin discussions has normalized, with high altcoin discussions potentially influencing a bearish sentiment if they outperform the leading cryptocurrency during the first week of February. 

Unlike previous spikes in Bitcoin social dominance, which signaled market tops, a negative spike suggests a shift in focus towards altcoins, potentially indicating over-leveraging in portfolios.

On-chain reports for ETFs on February 1st, 2024, revealed Grayscale’s reduction of 5,086 BTC ($218 million), while eight ETFs collectively added 8,907 BTC ($382 million), with Fidelity contributing 5,422 BTC ($232.6 million) to the pool.

The evolving dynamics of Bitcoin accumulation and ETF trends offer valuable insights into the cryptocurrency market’s current sentiment and investor behavior, shaping the trajectory of digital asset investments in the near future.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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