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Retail investors focused on long-term holdings propelled Bitcoin (BTC) out of its four-month trading range between $100,000 and $110,000, reaching a new all-time peak of $123,120, marking a 65% recovery from the low caused by tariff concerns in April.
The latest Bitfinex Alpha report indicates that the surge in buying activity came from wallets containing fewer than 100 BTC, while the selling from long-term holders has diminished.
Grassroots demand surpasses issuance
Wallets categorized as Shrimp, Crab, and Fish, which hold up to 100 BTC, accumulated approximately 19,300 BTC monthly through early July. Following the April halving, new issuance stands at around 13,400 BTC each month, meaning that this retail segment now absorbs all the coins produced by miners, with additional capacity available.
The report described this disparity as “critical structural support,” as it decreases the tradable supply and tightens the market even prior to the influx of institutional capital.
Allocations to exchange-traded funds (ETFs) intensified the pressure. Spot products recorded consecutive daily creations exceeding $1 billion for the first time on July 10 and 11. On July 10, issuers generated about 10,000 BTC, while miners yielded 450 BTC.
Since July 8, total inflows reached $2.72 billion, elevating assets under management across the 11 US funds to over $140 billion.
Retail establishes the foundation, institutions fuel the surge
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Data at the wallet level indicated that short-term holders, many of whom are new to the market, instigated the breakout. Nevertheless, retail accumulation prepared the ground by depleting exchange balances over several months.
Once the price surpassed $110,000, ETFs and macro-hedge desks ramped up their purchases, achieving two record inflow sessions while Bitcoin’s available supply remained near cycle lows. The report highlighted that BlackRock’s IBIT reached $80 billion in assets more rapidly than any ETF in history, yet grassroots demand “continues to outpace issuance by a wide margin.”
The report characterized Bitcoin as a “high-beta safe haven.” The cryptocurrency led recoveries in risk-off scenarios following the April tariff shock, outperforming gold, equities, and significant altcoins in the process.
With a market capitalization of $2.43 trillion, it now ranks fifth among global assets, surpassing silver and Amazon.
Moreover, the report contended that the combination of bottom-up buying and top-down ETF allocations has transformed Bitcoin’s role within investment portfolios.
Retail absorption mitigates downside risks by eliminating inventory, while regulated funds provide mechanical demand during allocation rebalancing.
Collectively, they form what the report termed a “structural bid” that supports the new price range and could continue as long as issuance remains below grassroots demand.
Bitcoin’s latest rally was driven by everyday holders who accumulated at a pace faster than miners could produce new coins, setting the stage for unprecedented ETF inflows and a new all-time high.
The post Retail accumulation absorbs fresh supply, propels Bitcoin to record highs appeared first on CryptoSlate.
