Bitcoin is experiencing renewed upward momentum, with analysts at Bitfinex attributing the rally to aggressive spot market demand rather than speculative trading activity.
On chain metrics reveal that spot Cumulative Volume Delta surged sharply after May 8, indicating that buyers were actively absorbing available supply and purchasing BTC at premium prices.
After weeks of speculation fueled movements, bitcoin’s recent gains appear to be supported by genuine spot demand. Market indicators that previously signaled weakening demand have now shifted back into growth territory as the crypto sector responds to recent U.S. economic data.
According to the latest Bitfinex Alpha report, bitcoin’s breakout reflects an increasing disconnect between historical economic data from the United States and worsening consumer sentiment. Analysts believe this macroeconomic backdrop is playing a major role in lifting risk assets such as BTC.
Bitcoin Shows Signs of Structural Strength
Since early April, the total cryptocurrency market capitalization has increased by approximately $200 billion, driven largely by bitcoin’s 12 percent rally, which marked its strongest monthly performance in over a year.
By the beginning of May, BTC successfully climbed above the $80,000 level for the first time since January 31, breaking through a heavy supply zone between $78,000 and $79,000. Although bitcoin was trading around $80,900 at the time of reporting, the rally briefly pushed prices close to $83,000.
Bitfinex analysts described the breakout as a significant structural improvement that placed bitcoin above a major aggregate cost basis level near $79,800. This level also represents the asset’s True Market Mean, which BTC has now reclaimed.
What stands out most about the rally is that it has been fueled primarily by aggressive spot buying. Just last week, reports suggested that the market lacked sufficient demand to sustain a move above $80,000.
Spot Market Activity Returns as Long Term Holders Increase Accumulation
On chain data indicates that spot CVD rose rapidly after May 8, signaling that buyers were consistently lifting offers and absorbing supply at elevated prices.
At the same time, order book conditions shifted from heavily bid skewed to more balanced territory. Analysts noted that the renewed demand has come from both spot Bitcoin exchange-traded fund inflows and open market accumulation.
Two weeks earlier, Strategy, led by Michael Saylor, had also been a major contributor to spot demand. However, the pace of purchases has slowed because the company’s buying activity is now tied to its yield bearing product, STRC.
The report noted that STRC has struggled to trade at or above its $100 par value, a condition required for Strategy to continue purchasing additional BTC. The company is reportedly even considering selling part of its bitcoin holdings.
Despite this slowdown, conviction buyers, entities known for accumulating bitcoin and rarely selling regardless of market conditions, have continued increasing their holdings. Analysts estimate that these investors now control roughly 4 million BTC following their strongest accumulation wave since the COVID 19 market crash.
Historical trends suggest that similar periods of accumulation by long term holders have often preceded major bitcoin price recoveries.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
