As long-term holders continue to accumulate, Bitcoin gets a new spot regime: Bitfinex

Analysts at crypto exchange Bitfinex have noted a significant shift in spot trading for Bitcoin, as long-time BTC holders continue their rallying strategy amid unfavorable market conditions.

According to the latest Bitfinex Alpha report, long-term holders now own 80.34% of the total bitcoin supply, which is 15 million BTC. Comparatively, assets held by short holders fell to 19.34%. Analysts said this shows a strong commitment to hold assets.

Long-term holders remain stockpiled.

As long-term holders follow their accumulation strategy, the gains and losses of bitcoin are negligible. Bitfinex's profit and loss per BTC fell to the lowest since 2019.

The current realized profit is $724 and the loss is $236. Compared to April 2021 and May 2022, the average profit and loss figures were $12,900 and $6,700. Based on historical data, the decline in realized profit and loss indicates that the market is in a transition phase.

“Given that these current levels are significantly lower than the previous cycle's profit and loss figures, most coin trading is done at their original cost. This paints a picture of a market in which dominant players are indifferent to price changes or traders are jostling for a marginally advantageous position.” said Bitfinex.

Liquid market

In addition, Bitfinex analysts said that the supply gap between long and short-term holders is high because, according to BTC's history, the behavior usually occurs at the beginning of a bull market or during a temporary phase where the market remains for a certain period of time. After you go back in a loose area.

As the crypto market continues to be volatile, analysts believe that spot transactions will play an important role in determining its movement in the coming weeks and months.

Meanwhile, BTC and Ether saw an increase in open interest in the futures markets, with the former totaling $8.7 billion on central crypto exchanges, suggesting volatility and massive liquidity for both short and long positions.