Blockchain
Bitcoin (BTC) enters the accumulation phase amid market adjustments
According to Bitfinex Alpha, Bitcoin (BTC) has entered an accumulation phase following the substantial price correction and consolidation. After reaching a new all-time high of $73,666 in March, long-term (LTH) holders have been dumping significant amounts of BTC, leading to increased supply and subsequent price corrections.
Market dynamics and Bitcoin ETFs
Recent weeks have shown a resurgence in demand for Bitcoin ETFs, with net inflows averaging $136 million per day, significantly exceeding the $32 million daily selling pressure from miners following the halving. Bitcoin exchange reserves have decreased while new accumulation addresses have increased. LTHs who previously sold at the market peak have started to accumulate Bitcoin again, indicating long-term bullish sentiment.
Growth of Solana’s DeFi ecosystem
Solana’s DeFi ecosystem is seeing rapid growth, with significant activity in lending, liquid staking, and perpetual markets. Solana now boasts a Total Value Locked (TVL) of $4.78 billion and 24-hour NFT trading volumes of $1.8 million. Solana also leads the way in stablecoin transaction size among blockchains, thanks to its high throughput and scalability. Despite being behind Ethereum in TVL, Solana ranks second in decentralized trading volumes per chain.
Macroeconomic indicators
In the broader economic context, divergent views have emerged on US consumer confidence. The Conference Board reported an unexpected increase, while the University of Michigan’s sentiment index recorded a sharp decline. GDP growth for the first quarter was below expectations at a revised rate of 1.3%, reflecting lower consumer spending and lower inflation.
High interest rates and reduced fiscal support are slowing consumer spending, as evident from April’s stabilization of the Personal Consumption Expenditures (PCE) price index, with personal savings rates remaining low. Potential rate cuts by the Federal Reserve are expected later in the year.
Notable developments in the cryptocurrency industry
Tether has committed up to $150 million to Bitcoin miner Bitdeer to expand its operations. Additionally, the New York Stock Exchange (NYSE) and CoinDesk Indexes are set to launch cash-settled Bitcoin index options, enhancing digital asset offerings and risk management tools. Franklin Templeton, VanEck and Invesco Galaxy are preparing to launch Ether spot ETFs, pending SEC approval.
BlackRock’s iBIT has become the largest Bitcoin ETF, surpassing GBTC, with higher trading volumes and lower fees, attracting institutional investors.
For more detailed insights we invite you to visit the official Bitfinex Alpha [source](https://blog.bitfinex.com/bitfinex-alpha/bitfinex-alpha-btc-enters-accumulation-period/).
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