Grayscale’s Bitcoin Trust adds over 5k BTC in 24 hours
Bitcoin’s price was stumbling to lower levels after it hit an all-time high of $42k. The largest digital asset managed to retrace its steps to $38k recently, before witnessing another fall. However, this time around, this drop in price was an opportunity for the institutions to bag even more BTC. Grayscale has been one such active firm adding more Bitcoin over the past three days.
According to data provider Bybt, as the price of BTC retracted from $38k, Grayscale Bitcoin Trust added almost 10,000 BTC.
The above chart indicated that after a gap of almost 20 days Grayscale Bitcoin Trust added even more BTC. Although the previous buying was more than the current, the price of the digital asset has also increased significantly in the meantime.
It also noted three candles which denoted that the firm increased its holdings by 2.17k BTC on 14 January, while on 15 January it added an additional 2.61k BTC. However, 16 January saw this value almost double as GBTC added 5.13k BTC to its bags. This shot its total asset under management [AUM] for GBTC to $22.9 billion.
The increase in the past 24-hours signaled that the firm was now acquiring nearly 5.7x of the daily Bitcoin entering the market. This may be creating a shortage for other retail investors.
Market observer Bloqport noted that in the past 30 days, 67K BTC equivalent to the value of $2.5 billion left exchanges. These BTC were moved to the hot/cold wallets.
Whereas, if we zoomed out a little more to the fall we witnessed in March 2020, the percentage of Bitcoin on exchanges has fallen drastically by 21% from over $20k to $5k now.
The demand for the digital asset has remained high in the market among institutions like Grayscale that noted a 900% growth for its GBTC in 2020. While the falling price has posed an opportunity for most institutions to “buy the dip” and create a shortage of the already scarce cryptocurrency. This has added to the growth momentum of Bitcoin and spurred accumulation for Bitcoin whales as well.
OhNoCrypto
via https://www.ohnocrypto.com
Namrata Shukla, @KhareemSudlow