The cryptocurrency market has reached a new all-time high of nearly $3.5 trillion, with Bitcoin (BTC) taking the lead thanks to strong institutional inflows.

Moreover, the market share of altcoins excluding Ethereum (ETH), known as Total 3, has also reached its highest level in over three years.

According to a recent report from Bitfinex, investment inflows from the previous election low of $66,880 have been unprecedented, pushing Bitcoin to continuously reach new highs. BTC reached a peak of $99,334 before slightly correcting to $92,500 today.

Daily BTC/USDT chart | Source: TradingView

Despite long-term investors taking profits, Bitcoin continues to maintain its upward momentum thanks to demand from new investors, primarily through ETF funds.

Just last week, U.S. spot Bitcoin ETFs recorded net inflows exceeding $3.35 billion.

However, as institutional trading often pauses on weekends, the market has witnessed price declines due to supply-demand imbalances. As Bitcoin approaches the $100,000 mark, monitoring daily ETF inflows becomes particularly important, as any slowdown could signal a decline in interest at high price levels and the potential for deeper corrections.

Altcoin market explosion

The altcoin market, represented by the Total3 index (excluding Bitcoin and Ethereum), has also reached a new cycle high, increasing by 23.2% — the largest increase since April 2021.

TOTAL3 weekly chart | Source: TradingView

This momentum reflects the growing interest from investors in altcoins, potentially driven by market sentiment and changes in regulatory frameworks.

Large-cap altcoins like Solana (SOL) have reached all-time highs, outperforming Bitcoin across important timeframes and marking the start of 'altcoin season' — a period of strong price increases for altcoins.

Absorbing selling pressure

New institutional inflows have played a crucial role in absorbing selling pressure.

History shows that when Bitcoin reaches new highs in years with halving events, long-term holders' (LTH) wallets — typically accumulating in bear markets — become more active.

The average purchase price of current LTHs is $24,912, resulting in significant unrealized profits at the current price level. With Bitcoin's growth, LTHs have sold over 461,000 BTC since the price exceeded the previous ATH of $73,666 last month.

The Long-Term Holder Spending Binary indicator, which tracks the days when LTH selling surpasses buying, shows increased selling pressure.

Long-Term Holder Spending Binary indicator | Source: Glassnode

However, the current distribution levels are less severe than previous peaks in March 2021 and March 2024, suggesting that this sell-off remains manageable. Typically, when this indicator reaches high levels, prices tend to peak within three to four months if the trend persists.

Outperforming traditional assets

The recent price surge marks Bitcoin's third strong rally since February 2020. With an ever-increasing market cap, the amount of capital needed to achieve similar percentage gains has risen significantly.

If Bitcoin maintains its current momentum, this could become the largest standard deviation increase compared to the average monthly performance for the entire year.

The report highlights that the growth of BTC has made it the seventh largest tradable asset by market capitalization, surpassing large entities like Saudi Aramco. Bitcoin's 56.9% profit for the quarter so far has far outpaced traditional safe-haven assets like gold (5.3%) and silver (8.1%) during the same period.

Correction potential

Although the market continues to maintain an upward trend, a small correction or accumulation phase may occur, especially with upcoming macroeconomic events such as the announcement of the U.S. Consumer Price Index (CPI) and the Federal Open Market Committee (FOMC) minutes being closely watched.

Additionally, with the increase in volatility and liquidations — totaling over $500 million across the cryptocurrency market in recent days — a balancing phase seems feasible.

The report also notes that the funding rate of large-cap cryptocurrencies is rising, indicating the potential for greater volatility and significant price swings.

While Bitcoin continues to soar, altcoins may react more strongly to any corrections in BTC, making this a crucial time for investors to closely monitor market developments.



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