16:29Going long: 270K Bitcoin moved into storage in a month
Investors are in it for the long run, locking 270,000 BTC away over the last 30 days.
Despite surging prices, Bitcoin investors are rapidly locking up their BTC for the long-term, with 270,000 BTC being taken out of liquid supply in the last 30 days.
According to data published by crypto market data aggregator Glassnode, “liquid” Bitcoin wallets have shed 270,000 BTC over the past month, up from 175,000 Bitcoin at the start of January
Bitcoin Monthly Liquid Supply Change. Source: Glassnode
Bitcoin’s increasingly illiquid supply could be bullish for its price, with new retail and institutional traders vying for an increasingly diminishing supply. Glassnode estimates that nearly 80% of the 18.6 million circulating Bitcoin are currently stored in “illiquid” wallets.
According to Glassnode, a Bitcoin wallet is considered illiquid if less than 25% of the Bitcoin received has been transferred out across the entity’s life. In contrast, to be deemed highly liquid, the majority of Bitcoin must be transferred back into circulation, with less than 25% of the inflows held onto.
Bitcoin liquidity supply. Source: Glassnode
Increasing institutional investment may be a significant force driving the depletion of Bitcoin’s liquid supply, with wallet tracking service Bitcoin Treasuries currently estimates that 33 institutional entities have accumulated more than 1.2 million BTC or 6.5% of Bitcoin’s circulating supply.
In the last few days, Grayscale has increased its holdings by approximately 25,000 BTC with a portfolio of 641,523.7 BTC as of January 20, 2021. To put this in perspective, approximately 900 Bitcoin are minted each day. According to Glassnode, however, on average only one-third of those are actually being sent to exchanges since July 2020.
Data from Investment firm SwissBorg shows that in the second half of 2020, institutional investors purchased on average more than 230% of the newly minted BTC. Adding in the purchases from PayPal and Square (along with the estimated amount of Bitcoin lost each day) demand could be running as high as 500% of the new supply.
Earlier today, the world’s largest asset manager BlackRock filed with the SEC, listing Bitcoin Derivatives as a possible investment. The firm entered 2021 with $7.81 trillion in assets under management, more than seven times crypto’s entire market cap.
|Total comments: 0|
|Mega Chop is Expected in Bitcoin Market Amidst “Continued Appetite” from Big Investors (0)|
|Bitcoin is tens of thousands away from “overbought” territory, study suggests (0)|
|Bitcoin’s chances of hitting $100,000 in 2021 stumble as Kanye West tipped to buy $100m (0)|
|Bitcoin and Ethereum Form A Bullish Reversing Chart Pattern (0)|
|Bitcoin and Ethereum slow down as transaction values and fees plunge 70% (0)|
|BITCOIN PRICE BOUNCES BACK ABOVE $50,000 AS PROMINENT INVESTOR PREDICTS IT COULD RISE TO $5M (0)|
|Bitcoin is set to soar (0)|
|Traders Fear "Black Thursday" Comeback as Bitcoin Returns in March Mostly Negative, Statistics Say (0)|
|Bitcoin to $10,000 or $100,000 in 2021? (0)|
|Citigroup & Goldman Sachs: Bitcoin’s Moment Is Now (0)|