Institutes buy massive amounts of Bitcoin (BTC), bend over and don’t sell, as the data shows how the network was imitated in early 2016.
Data from various sources uploaded to social media this week shows that more than 40% of Bitcoin supply has not been in your wallet for two years.
Institutional demand for Bitcoin far outstrips supply
At the same time, institutional sourcing is buying massive amounts of BTC, which is increasingly looking like a preparation for a long-term investment strategy.
“In the last two weeks … – Grayscale increased USD $ 14,422 BTC GBTC. – Microstrategy bought 21,454 BTC. – Bitcoin miners mined 12,594 BTC, summary analyst Kevin Rock.
The institutes’ current and future love of bitcoin grabbed the headlines this week thanks to MicroStrategy, which made the biggest cryptocurrency its new reserve asset in the treasury. The purchase cost of 21454 BTC is $ 250 million.
Grayscale is back in Bitcoin purchases after a temporary halt. The company already owns a large number of coins. Cointelegraph reports that it is on track to retain 3.4% of total supply by 2021 as assets under management recently exceed $ 5 billion.
In recent weeks, miners have added fewer coins to supply than to demand from these two institutional operators. With the release of the “new” BTC per fixed block – down 50% when it halved in May – price increases were virtually guaranteed.
The company’s offering, whose change requires consensus by a miner who will likely make all network participants poorer, is a key feature of Bitcoin that has enabled it to maintain its status as a digitally scarce cash.
Buy Bitcoin on Grayscale and MicroStrategy vs. receipt
Buy Bitcoin on Grayscale and MicroStrategy vs. receipt. Source: Kevin Rooke / Twitter
“Nobody wants to profit.”
More numbers confirm the notion that while BTC / USD has reached its highest level in over a year, investors are not in the mood to sell.
Instead, a long-term investment strategy appears to be in place, with roughly half of the available supply remaining stable for at least two years.
Charles Edwards, Capriol’s Digital Asset Manager, commented, “The last time I accumulated a large amount of supply and withheld Bitcoin was in January 2016.”
And despite the recent price hikes, no one wants to make a profit. Demand is increasing and supply is decreasing. ”
Bitcoin Hodl wave chart with constant care
Bitcoin Hodl wave chart with constant care. Source: Charles Edwards / Glassnode
At that point, it would be nearly two years before Bitcoin reached an all-time high of $ 20,000.
As Cointelegraph reported, the comparisons with 2016 also came from statistician Willie Wu this week. Woo argued that Bitcoin was now in a “major early rally,” similar to how it was in the last quarter of this year.
Tyler Winklevos used the words of Michael Saylor, CEO of MicroStrategy, urging Twitter followers to hedge against mandatory inflation with Bitcoin.
Big money swell is imminent. Arm yourself with Bitcoin, “he wrote on Wednesday.