Grayscale has purchased 5.7x the daily amount of BTC mined. The company has exactly acquired two days ago 5,000 BTC worth $189 million. This is according to data provided by Bloqport, a crypto analytics company. This shows there is a large interest from companies to invest in Bitcoin.
Grayscale Purchases Bitcoin
Grayscale continues purchasing Bitcoin for its Grayscale Bitcoin Trust (GBTC). Large and traditional investors are using Grayscale solution in order to get access to the virtual currency market. Most of the solutions out there were created for retail investors. Grayscale Bitcoin Trust offers access to BTC to large companies from all over the world.
In addition to it, over the past 30 days, more than 67,000 BTC left exchanges for hot and cold wallets. This is equal to almost $2.4 billion at the time of writing. If the trend continues, the effect on the supply side could be massive for the virtual currency. Investors would not be able to find the BTC they want to buy at current prices.
The information shared by CryptoQuant, a blockchain and crypto analytics company, shows investors want to withdraw their funds for long and medium-term investments rather than for short term gains. Hot and cold wallets are usually the best way for users to hold their BTC and cryptocurrencies rather than exchanges.
With a higher demand for the virtual currency, it might be possible for it to continue moving higher in the coming months. However, we have seen BTC now retracing to $34,500 a trend that could continue in the coming days. Nevertheless, the impact that this could have on the market is definitely large.
Bitcoin (BTC) has doubled already from its previous all-time high of $20,000 to $40,000. The massive price increase experienced between November and early January 2021 attracted a large number of new investors from all over the world. Some Altcoins have also been growing over the last months. This shows the entire crypto market is bullish at the moment.
Ethereum (ETH) for example, is being traded above $1,150 and other virtual currencies such as Polkadot (DOT) or Chainlink (LINK) have experienced massive price increases in recent days. Now it might be time for Bitcoin to gain strength and continue moving higher towards new highs. With a lower supply (present in exchanges) and a larger demand, we could see new highs in 2021.
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