Institutions are buying large amounts of Bitcoin (BTC) by hodling, not selling it, as the data show by imitating the beginning of 2016.
Data from various sources uploaded to social networks this week shows that more than 40% of Bitcoin’s supply has not left its purse in two years.
The Grayscale Bitcoin Trust recorded an increase in investor interest after March
Institutional demand for BTC far exceeds supply
At the same time, institutional-grade sources are buying up huge amounts of BTCs, in what increasingly seems like preparation for a long-term investment strategy.
“In the last two weeks… – …Grayscale added 14,422 BTCs to $GBTCs. – Microstrategy bought 21,454 BTC. – The Bitcoin miners mined 12,594 BTC,” summarized analyst Kevin Rooke.
The future of institutions and today’s love for Bitcoin made headlines this week thanks to MicroStrategy, which made the world’s largest kryptonite its newest cash reserve asset. The purchase of 21,454 BTCs cost $250 million.
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Grasycale, meanwhile, has returned to Bitcoin shopping after a temporary moratorium. The company already owns a large number of coins, and Cointelegraph reports that it is on track to maintain 3.4% of total supply by 2021 as its AUM has recently exceeded $5 billion.
In recent weeks, miners have contributed fewer currencies to the supply compared to even the demand from these two institutional players. Since the launch of the “new” BTC per block is set, and fell by 50% in the May halving, price increases were almost guaranteed.
Fixed supply, whose change requires the consensus of miners, which would probably impoverish all network participants, is a key feature of Bitcoin that has allowed it to preserve its status as digitally scarce hard money.
Bitcoin buying from Grayscale and MicroStrategy Vs. supply
“No one wants to make a profit.”
Other figures reinforce the idea that although BTC/USD has reached its highest levels in over a year, investors are not in the mood to sell.
Instead, a long-term investment strategy seems already in play; almost half of the available supply remains stationary for at least two years.
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“The last time this amount of supply had accumulated and was stored in Bitcoin Era was January 2016,” said Charles Edwards of digital asset manager Capriole, adding:
“Despite recent price increases, no one wants to make a profit. Demand is increasing and supply is decreasing.