According to U.Today, trader Gert van Lagen has suggested that the distribution of Bitcoin from long-term holders to new ETF holders is a significant factor preventing the cryptocurrency from breaking the $70,000 mark. In May, van Lagen observed that this distribution process was already well underway, a conclusion drawn from on-chain data showing a turnover in coins held for over a year.

Van Lagen has previously noted that such distributions often lead to 'parabolic' price discoveries, followed by extended bear markets. Despite Bitcoin's struggle to surpass the crucial $70,000 level, many believe the current bull run is far from over. Galaxy Digital CEO Mike Novogratz, for instance, has predicted that Bitcoin could reach $100,000 by year's end if it can overcome the major resistance area around $73,000 soon. Similarly, Fundstrat co-founder Tom Lee and renowned commodity trader Peter Brandt have suggested a potential peak of $150,000 for Bitcoin during this cycle.

In other news, U.S.-based spot exchange-traded funds (ETFs) have seen 19 consecutive days of inflows, with the second-largest ever inflows ($880 million) recorded on a recent Tuesday. Leading analyst Eric Balchunas has commented on the impressive resilience of Bitcoin ETFs, despite their volatile performance.

However, the Bitcoin price took a hit following the release of U.S. jobs data, which showed a higher than expected increase in jobs added in May. The robust labor market could deter the U.S. Federal Reserve from implementing rate cuts, a situation that could negatively impact risk assets like Bitcoin.

According to CryptoPotato, El Salvador tops the list of countries with the highest interest in Bitcoin, as shown by Google Trends data. The Central American nation made headlines in 2021 when it became the first country to officially recognize Bitcoin as legal tender. Since then, its pro-Bitcoin political leader, Nayib Bukele, and his administration have outlined numerous Bitcoin-related initiatives, including a vet hospital paid with the cryptocurrency, volcano bonds, and mining it with excess volcano energy. El Salvador currently holds $400 million worth of BTC.

Nigeria ranks second in interest in Bitcoin, despite the government's previous prohibition on banks servicing cryptocurrency clients. The African nation has been battling galloping inflation for years and has blamed the cryptocurrency industry for its devaluating fiat currency. However, Nigerians have always been fond of Bitcoin and other digital assets, as shown by many surveys.

The other three countries in the top five are Liechtenstein, Switzerland, and Austria, all European nations with strong economies. Switzerland is known for being pro-crypto, with multiple crypto exchange-traded products on the Swiss market, a local bank offering staking for different assets, and the Canton of Zug allowing certain payments to be made with Bitcoin and Ethereum.

According to PANews, cross-chain NFT marketplace Magic Eden plans to support the upcoming Bitcoin Runes token standard. Runes is a fungible token standard created by Casey Rodarmor, the founder of Bitcoin NFT protocol Ordinals. It is expected to launch on the Bitcoin mainnet after the Bitcoin halving.

The integration of the Runes token standard into Magic Eden's platform will allow users to trade and interact with Bitcoin-based NFTs, expanding the marketplace's offerings and providing more options for users. This move highlights the growing interest in NFTs within the Bitcoin ecosystem and the potential for further development and adoption of NFT technology on the Bitcoin network.

According to PANews, Ethereum infrastructure provider ConsenSys has submitted a comment letter to the U.S. Securities and Exchange Commission (SEC), urging the approval of an Ethereum spot ETF. The letter refutes the SEC's concerns about potential fraud and manipulation, as well as concerns about Ethereum's proof of stake consensus design. It highlights Ethereum's rapid block finality, distributed and random verification process, high attack costs, slashing penalties, and environmental benefits.

ConsenSys urges the SEC to recognize the inherent advanced security measures in Ethereum's design, stating that these measures not only meet but exceed the safety and resilience safeguards of the previously approved Bitcoin spot ETF. The deadline for the SEC to make a decision on VanEck's Ethereum spot ETF application is May 23.

According to CryptoPotato, spot Bitcoin exchange-traded funds (ETFs) in the United States have resumed positive flows, marking the fourth consecutive day of net inflows and concluding March on a strong note. The total net inflow for spot Bitcoin ETFs reached $183 million on March 28. SoSo Value data shows that the latest figures contributed to a cumulative net inflow of almost $12.13 billion. BlackRock’s iShares Bitcoin ETF (IBIT) led the pack with more than $95 million net inflows, followed closely by Fidelity Wise Origin Bitcoin Fund (FBTC) with $69.09 million. Bitwise’s BITB and ARK 21Shares Bitcoin ETF (ARKB) recorded $67 million and $27.6 million in inflows, while VanEck’s HODL settled with inflows of $20 million.

However, the Grayscale Bitcoin Trust (GBTC) continued to witness net outflows, shedding nearly $105 million from its product, the lowest since March 12th. This comes after a minor setback with five consecutive days of outflows from spot Bitcoin ETFs from March 18th to 22nd. During this time, Bitcoin briefly plunged below $63,000, sparking concerns among market participants. The rebound to $70,000 improved market sentiment, with the ETF space seeing increased demand and an influx of new players. Earlier this week, crypto asset management firm Hashdex announced plans to convert its futures fund, 'Hashdex Bitcoin Futures ETF,' to a spot Bitcoin ETF called 'Hashdex Bitcoin ETF' under the ticker 'DEFI' in partnership with Tidal Investments LLC. With this development, HashDEX has become the eleventh player to enter the competitive landscape, largely controlled by two major players – BlackRock and Fidelity. In a recent Fox Business interview, BlackRock CEO Larry Fink expressed his pleasant surprise regarding the performance of the spot Bitcoin ETF offered by his firm. He reaffirmed his strong optimism about the leading crypto asset’s long-term prospects and highlighted that he is 'very bullish' on its viability. Fink added that he was taken aback by the impressive performance of the iShares Bitcoin Trust (IBIT), especially during the initial 11 trading weeks, and said that the fund has exceeded his expectations.

The estate of bankrupt cryptocurrency exchange FTX will sell its balance of 41 million Solana (SOL), worth $7.65 billion at the time of publication, to institutional investors at around $60, or a 68% discount to its current market price.

As told by FTX creditor Sunil Kavuri during FTX co-founder and former CEO Sam Bankman-Fried’s (SBF) sentencing on March 28, not all customers have been made whole by the exchange's bankruptcy. “Sullivan & Cromwell [FTX bankruptcy counsel] has trampled over our property rights,” Kavuri alleged. “They have liquidated billions of dollars of crypto assets. There’s a token S&C sold at 11 cents; it’s now trading at two dollars. FTX had $10 billion [misprint] in Solana tokens — they sold it at 70% discount."

In an earlier victim impact statement filed by Kavuri, the FTX creditor claimed that the FTX estate “owns 41.1 million Solana tokens which should be distributed to FTX creditors. They were planning to sell them for $60, the price today is $187." Despite the creditors’ claims, presiding Judge Lewis A. Kaplan reiterated that the March 28 hearing was solely for sentencing SBF, and not for raising issues with creditors’ claims. “I accept your assertion the claim customers will be made whole is inaccurate," said Judge Kaplan. 

At least one investor seems to have confirmed the discounted sales. On March 27, Canadian blockchain firm Neptune Digital Assets announced it had acquired 26,964 SOL at $64 per token, a 67% discount to its then-market price. Although the firm did not specify its counterparty, the terms of the sale match the offer conditions provided by the FTX estate. 

As per a March 7 Bloomberg report, the vesting period for the purchase of discounted SOL tokens is four years. Simultaneous to the bankruptcy proceedings, FTX creditors have filed a class action against Sullivan and Cromwell, alleging that the firm participated in the FTX fraud before it became the exchange's bankruptcy counsel. Before its collapse, FTX was an early investor in the Solana ecosystem. 

Related: Sam Bankman-Fried sentenced to 25 years in prison

According to Foresight News, Fidelity has submitted an S-1 form for its proposed Ethereum spot ETF, which includes a staking feature. The news was reported by The Block.

Bitcoin (BTC) price faced a moderate correction to $68,430 on March 27 after failing to break above the $71,000 mark. Data from Bitcoin derivatives data reveal a decline in bullish sentiment among professional traders over the past week, which could possibly indicate that the $69,000 level will not hold.

Bitcoin spot ETF inflows will be decisive for BTC’s price

Despite a rally from $63,800 to $70,000 in the five days leading up to March 27, only $151 million in leveraged short positions were forcibly closed in the BTC futures markets. This suggests that bears remained cautious, even in light of last week's significant $888 million net withdrawal from U.S. Bitcoin spot exchange-traded funds (ETFs).

On a positive note, Bitcoin has demonstrated resilience by recovering from a 17.6% drop from $73,757 on March 14 to $60,795 on March 20 without causing panic among spot ETF investors. However, some market observers argue that the primary driver behind BTC reaching a new high before the April Bitcoin halving was the unexpectedly high inflows into spot ETFs, highlighting the importance for bulls to monitor such trends.

A positive for Bitcoin enthusiasts, this week saw a reversal in spot ETF flows, with a total of $418 million in net inflows recorded on March 26. Crucially, this was not due to reduced outflows from Grayscale's GBTC, indicating genuine institutional demand even as Bitcoin's price lingered just 4% below its peak. However, this does not assure professional traders that $69,000 will serve as a support level.

Analysts can discern whether whales and arbitrage desks are adopting a bullish or bearish stance by analyzing aggregated positions across spot, perpetual, and quarterly futures contracts.

Exchanges’ top traders BTC long-to-short ratio, 12 hours. Source: Coinglass

On Binance, the long-to-short ratio among professional traders was 1.50, favoring long positions on March 22, a figure that has slightly decreased to 1.42 currently. On OKX, the sentiment was much more bullish on March 22, with a long-to-short ratio of 3.22, a sentiment that has since diminished, with the ratio currently at 1.49 in favor of longs. This indicates a notable reduction in optimism among top traders, despite the 9.5% price increase during the period, suggesting other factors may be dampening bullish sentiment.

Global economic concerns and mixed market signals impact Bitcoin price

Some analysts argue that the global economic downturn is impacting Bitcoin's performance, particularly after the S&P 500 index could not maintain its all-time high of 5,320 achieved on March 21. The uncertainty surrounding the U.S. Federal Reserve's interest rate decisions for 2024 is causing investors to lose confidence; rate cuts are generally seen as positive for risk-on assets like Bitcoin. According to the CME FedWatch Tool, which reflects the expectations of the fixed-income markets, there's only an 8% chance of a rate cut at the Federal Reserve's May 1 meeting.

Furthermore, analysts caution that a Fed rate cut may signal troubles rather than prosperity. Paul Hickey, co-founder of Bespoke Investment Group, shared his concern over the lack of earnings growth posing the greatest risk to the stock market. He also highlighted worries about the overemphasis on artificial intelligence, which has significantly propelled the stock market's recent gains.

Related: Massive Bitcoin consolidation sparks sell-side liquidity concerns

Data on Bitcoin's top traders indicates a decrease in the preference for leveraged long positions, differing from an increase in bears’ comfort. This shift may stem from simultaneous all-time highs in diverse asset classes, including gold, U.S. stocks, Bitcoin, Japan's Nikkei 225 index, and live cattle, suggesting market anticipation of a weaker U.S. dollar against scarce resources.

The diminished interest in leveraged BTC longs should not alarm investors, nor a signal that Bitcoin will trade below $69,000, as it likely reflects broader economic recession concerns and external pressures, such as the U.S. Justice Department's charges against KuCoin exchange on March 26 and the European Parliament's committee discussions on limiting cryptocurrency payments from self-hosted wallets.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

According to CryptoPotato, an unknown individual or entity recently consolidated 2,000 BTC mined in 2010 into a single wallet. The consolidation occurred on March 26, involving the transfer of 40 sets of mining rewards, each consisting of 50 BTC, into one wallet. At the time of mining, the rewards amounted to $600. Developer mononautical, who noted the consolidation, remarked, 'Imagine holding for 14 years as the value rockets from a few hundred dollars to $140 million.'

Responding to the revelation, another user raised concerns about the possibility of compromised key generation, suggesting either a known pool or a random origin for the rewards. However, mononautical clarified that the miner remains unidentified, suggesting the transfer may have been a strategic move rather than a security breach. 'It’s possible the keys were compromised, but it seems like this went straight to an OTC desk,' mononautical added, citing a previous instance of similar old mining wallet sweeps.

This news follows another significant Bitcoin movement over the weekend. The fifth richest Bitcoin address, which had remained dormant since 2019, suddenly sprung to life. According to blockchain analytics firm Arkham, in 2019, this address was funded with 94,500 BTC worth $6.05 billion. The Bitcoin remained untouched until recently when it was divided and transferred to new addresses. CryptoQuant founder and CEO Ki Young Ju pointed out that the consolidation indicates a 'sell-side liquidity crisis waking up old Bitcoin.' Ju also suggested that the transaction pattern indicates over-the-counter (OTC) sales of the funds. Meanwhile, CryptoQuant’s latest 'Weekly Crypto Report' outlined an upcoming 'sell-side liquidity crisis.' The report attributed the crisis to a surge in Bitcoin demand, mainly fueled by the introduction of spot Bitcoin exchange-traded funds (ETFs) in the U.S. This heightened demand has drastically reduced the available supply for sale. According to the report, Bitcoin’s liquid inventory has reached its lowest level ever in terms of months of demand, with current supply only sufficient to cover demand growth for twelve months.