From October 15 to November 15, the Bitcoin exchange rate (BTC) fell from 2.5 million to 2.355 million, the lowest since August 2018. Almost 145,000 BTC worth $ 2.35 billion at a price of $ 16,200 have been withdrawn from the stock exchanges.
During the same period, bitcoin miners used about 27,000 bitcoins, which is equivalent to approximately $ 437.4 million. Since miners mined 900 BTC a day after the May 11 halving, 900 BTC once every 30 days equals 27,000 BTC.
The explosive accumulation trend seen in the bitcoin market shows that investors expect a long-term bullish trend after the first half of the year.
Why shrinking bitcoin reserves is bullish
Half of the block reward occurs every four years until the stable supply of bitcoins reaches 21 million.
After every half of the bonus block, the number of daily Bitcoin miners is halved. This means that about 1,800 BTC were mined before being cut in half in May 2020. Until the next half of 2024, 900 BTC will be mined daily.
The number of bitcoins available on exchanges is dropping sharply as fewer bitcoins are extracted every day and the exchange of shares increases as well.
If the demand for bitcoins continues to rise, the decline in supply will increase the value of bitcoins. Therefore, many investors can expect BTC to see a long-term trend in the medium term.
Bitcoin Hash Rate Returns After Significant Difficulty Reduction
The growing rate of segmentation of the Bitcoin blockchain is another potential catalyst for BTC as 2021 approaches.
Bitcoin blockchain retail has rebounded in recent weeks from its largest decline since 2011, according to Blockchain.com data.
The average 7-day hash rate of bitcoins recovered from 106 million terhashes per second (TH / s) to 126 million TH / S between November 3-15.
Bitcoin hashing speed 7 days. Source: Blockchain.com
The hash rate of bitcoin, which is recovering very quickly after the rainy season, is an optimistic trend as it indicates that miners are likely to expect the price of bitcoin to rise in the medium term.
Data points for business accumulation
Grayscale reported on November 14 that net assets under management (AUM) are $ 9.8 billion. The company is located just $ 200 million of total assets of $ 10 billion.
AUM grayscale is a suitable indicator of corporate activity. The Grayscale Bitcoin Trust has evolved into an investment vehicle aimed at organizations looking to learn about BTC.
Other platforms designed specifically for institutions, such as the CME Bitcoin Futures Exchange, are approaching record volumes and open interest.
The combination of an increase in capital flows to institutional platforms and a decrease in the supply of bitcoins available on stock exchanges indicates that demand for bitcoins is likely to grow as the price approaches its peak.