Ethereum [ETH] fundamentals strengthen as derivatives trading surges – Can a new high be sustained?

Friday 14th of March 2025 20:00:23

Bitcoin Accumulation Rises as ETF Outflows Cool, Is a Breakout Coming?

Bitcoin's accumulation trend has reached new heights as exchange-traded fund (ETF) outflows slow down, sparking speculation about a potential breakout in the market.

According to data from Glassnode, a prominent on-chain analytics firm, the number of unspent transaction outputs (UTXOs) containing at least one whole bitcoin has reached a record high. This metric is often used to gauge the overall sentiment of the market, with accumulation indicating a bullish tone.

The uptick in accumulation comes as ETF outflows have cooled down significantly. In the past week, the ProShares Bitcoin Strategy ETF (BITA) and the VanEck Bitcoin ETF (XBTF) have seen a substantial decrease in outflows, with BITA experiencing its lowest outflow in over a month.

"This is a very bullish sign," said a market analyst. "When the accumulation trend is strong and ETF outflows are slowing down, it's a sign that institutional investors are becoming more comfortable with the market and are willing to hold onto their positions."

The accumulation trend has been building momentum over the past few weeks, with the number of UTXOs containing at least one whole bitcoin increasing by over 10% in the past month alone.

"This is a clear indication that investors are becoming more optimistic about the future of the market," said another analyst. "As the accumulation trend continues to rise, we're likely to see a breakout in the market, potentially to new highs."

The market is currently waiting with bated breath for the next move from the Federal Reserve, which is expected to announce its decision on interest rates later this month. A dovish stance from the Fed could further boost the market, sending bitcoin prices soaring.

For now, the accumulation trend and slowing ETF outflows suggest that investors are becoming more confident in the market, setting the stage for a potential breakout in the coming days.