Bitcoin Breaks Above $80,000 Amid Shift to Spot Buying and Long-Term Holder Accumulation

Bitcoin's recent surge above $80,000 has been driven by spot buying and accumulation of long-term holders, rather than rising derivatives leverage. According to a report by Bitfinex Alpha, the cryptocurrency has reclaimed the True Market Mean, a key indicator based on realized average cost, at around $79,800.

The report notes that spot cumulative volume delta (CVD) has surged since May 8, indicating buyers are aggressively absorbing sell-side liquidity. This is in contrast to previous rallies, which were driven by rising leverage. ETF inflows and accumulation in the spot market are also leading the move higher.

Bitfinex estimates that BTC holdings by conviction buyers have recently approached 4 million tokens, marking the biggest increase since the Covid-19 pandemic. The report describes the economy as entering a 'low-hire, low-fire' phase, with hiring slowing but no sharp increase in layoffs.