Bitfinex analysts have discovered that demand for Bitcoin from new market participants is increasing faster than its supply, as confirmed by recent data.
New Bitcoin Buyers Accumulating Faster Than Supply
According to Bitfinex's report, first-time Bitcoin buyers are accumulating the asset at a rate of 19.3K BTC per month, surpassing the 13.4K BTC issued since the last halving. Thus, the combined holdings of small Bitcoin portfolios (Shrimp, Crab, and Fish categories) are growing faster than the issuance rate by miners.
Demand Trend Strengthening with ETFs and New Buyers
Analysts noted that the new demand is sufficient to absorb fresh supply, and these buyers are consistently acquiring the asset regardless of the price. "This cohort-level accumulation trend supports the broader bullish narrative that new buyers entering the Bitcoin market are price-agnostic and are relentlessly accumulating with limited intervals," stated Bitfinex analysts. Meanwhile, the Bitcoin ETF sector recorded $2.7 billion inflows last week, further fueling high interest in the asset.
Market Volatility: Experts Warn of Corrections
Despite the rising prices, experts caution against potential volatility and sharp corrections. Redstone co-founder Marcin Kazmierczak noted that parabolic moves are often followed by sharp corrections. He emphasized that "volatility remains Bitcoin’s constant companion," referencing recent liquidated short positions amounting to approximately $430 million. The Fear & Greed Index registered its fifth consecutive day of Greed, pegged at 74.
Bitcoin's journey to new heights is accompanied by rising demand from new participants. However, experts express concerns regarding market stability and warn of potential volatility.
