Bitcoin only came under selling pressure for a short time. Institutional investors are fueling the rally again with their capital inflows.
Just in time for the weekend, the Bitcoin exchange rate (BTC) has shifted into forward gear and climbed with a daily gain of 3.7 percent to currently 32,440 US dollars. Since the price slide below the 30,000 mark on Wednesday, follow-up purchases have gradually been preparing the way back to the next higher ten thousand mark. A 24-hour fluctuation range of around 3,500 US dollars shows that trade is clearly picking up speed again.
The fact that the market is soaking up with liquidity again after intermittent distortions can be seen in the recent rapid increase in market capitalization. The total value of all Bitcoin was able to break the 600 billion US dollar mark again in yesterday’s trading. At press time, Bitcoin market capitalization climbs to $ 610 billion.
Grayscale clearly stands out among all the institutional investors who are proving to be the main engine of the Bitcoin rally. The asset manager already holds 3 percent of the total amount of Bitcoin in circulation and ensures a constant purchase of large amounts of BTC with constant purchases in the Bitcoin Trust.
According to Rafael Schultze-Kraft, CEO of the on-chain data platform Glassnode, these already exceed the supply newly generated by miners. While miners have “mined” 26,000 Bitcoin so far in 2021, Grayscale’s spending already amounts to over 40,000 BTC. Or in the words of Rafael Schultze-Kraft: “That is who you are selling to if you are selling now.”
According to bitcointreasuries, Grayscale now manages over 616,000 BTC in total. At the current exchange rate, the equivalent of the Grayscale Bitcoin Trust (GBTC) is just under 20 billion US dollars. As the asset manager reveals in the latest quarterly report, Bitcoin inflows amounted to almost 194 percent of all Bitcoin mined in Q4 2020 alone, with institutional customers accounting for 93 percent of the capital inflows. Even according to cautious estimates that ignore the Bitcoin that has been lost over the years, Grayscale holds around 3 percent of the total amount in circulation.
The example of Grayscale shows: This year, too, major investors are continuing their aggressive purchasing policy and accumulating considerable BTC stocks. As the graph below from Glassnode shows, the number of investors holding 1,000 or more BTC is growing steadily. The BTC ecosystem currently has 2,461 specimens of the whale genus, which currently hold at least 32 million US dollars in BTC.
It shows that with the onset of the Bitcoin rally, the proportion of wealthy investors also rose rapidly. Since December 26th, in just over a month, the whale population has grown by 10 percent. A good indication: Confidence in the market and the BTC value development seem unbroken.
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