Bitfinex Report: Bitcoin expected to enter a range-bound trading period, volatility to persist

PANews April 1 news, according to the latest report from Bitfinex, after a sharp price increase in March, Bitcoin reached a new all-time high (ATH), and Bitcoin prices are expected to enter a range trading period, although similar within the cycle The volatility is greater at the time point. On-chain data suggests that long-term holders have sold post-ATH, and although this is smaller than at the peak of the previous bull run, this has led to increased volatility as previously dormant supply enters the market. It is calculated that profits captured through on-chain transactions exceed $2.6 billion, 40% of which belongs to the long-term holder group. Further analysis shows that buying activity is also occurring and represents a bottom, as new investors enter the market and existing investors increase their positions in the belief that the market can rise further.

Spot Bitcoin ETFs have also become an important support for the market. Last week, net inflows into ETFs resumed again and passive demand continued. At the current rate of inflows, demand for Bitcoin is roughly twice the value of Bitcoin produced by mining. Putting all of these price dynamics together, Bitfinex believes that we will see a range-bound market in the current environment.