According to a recent report by Glassnode, long-term Bitcoin holders have resumed accumulation.

This is the first time this has happened since December 2023 and follows a period that saw several months of selling.

Spot ETFs Drive Market Resurgence

Residing just shy of its all-time high, Bitcoin continues to consolidate, with long-term holders beginning to re-accumulate coins for the first time since December 2023, stated the report.

Analysts observed that spending pressure from these holders has reduced over the past week, indicating a return to accumulation patterns and suggesting volatility may be needed to trigger any new wave of sell-offs.

The report also cited various market indicators suggesting a resurgence of buy-side demand. Last week, U.S.-based spot Bitcoin ETFs experienced an average daily net inflow of $242 million.

Considering the natural daily sell pressure by miners since the halving of $32 million per day, ETF buy pressure is almost eight times larger, which highlights the size and scale of the ETF impact, the analysts noted.

This trend suggests that the uptrend seen in 2023-24 may be primarily driven by spot markets, as evidenced by the launch and subsequent inflows into U.S. spot ETFs.

The report notes that this renewed interest has caused immediate buy-side activity, resulting in significant price movements across all timeframes. For the first time since late 2021, BTC experienced price shifts exceeding 20%, showing the markets responsiveness to the inflow of capital via ETFs.

Analysts also pointed to the ETH/BTC trading pair, potentially signaling a more promising outlook. If we consider the sizeable impact and influence that spot ETFs have had on Bitcoin since the turn of the year, the ETH/BTC trading pair may be exhibiting early signs of a more promising road ahead, they stated.

Bitcoin Gains in Recent Months

Glassnode also noted that bitcoins price movements have been more subtle over the past three months than in previous bull cycles. In this period, BTC achieved weekly, monthly, and quarterly gains of over 3.3%, 7.4%, and 25.6%, respectively, on only five out of the last 90 days.

In prior cycles, this count reached between 18 and 26 days, which suggests the current market may be somewhat more measured relative to historical bull markets, the analysts added.

Glassnode also mentioned that Ethereum has underperformed compared to other leading crypto assets over the last two years, resulting in a weaker ETH/BTC ratio. Despite this, the analysts believe the SECs approval of U.S. spot Ethereum ETFs has leveled the playing field between Bitcoin and Ethereum.