[ad_1]
The price of BTC has more than doubled since Bitcoin’s third block reward halved in May. Or to be precise, BTC has gained 110% since the halving, with prices dropping from $ 8,566 on May 11, 2020 to test $ 18,000 as of this writing.
According to a Nov. 19 report by crypto analysis firm Chainalysis, liquidity levels and exchange flows have changed dramatically since the halving.
The firm identifies illiquid or investor-held Bitcoin as “wallets that send less than 25% of the Bitcoin they have already received,” while the remaining wallets are classified as liquid Bitcoin or Bitcoin held by traders.
Chainalysis data shows that the number of Bitcoin available to new investors began to decline at the start of this year, while illiquid BTC has risen sharply. Chainalysis estimates that the number of currently liquid Bitcoins could be as low as 3.4 million.
The company attributes the decrease in the supply of liquid Bitcoin to the wholesale build-up of institutional investors throughout 2020:
“From high-profile investors like hedge fund manager Paul Tudor Jones, who compared buying Bitcoin to an early investment in Apple or Google, to companies like Square, who invested $ 50 million or 1% of its total assets in Bitcoin, traditional businesses and financial institutions are turning to Bitcoin ”.
Cryptocurrency fund manager Grayscale Bitcoin Trust, which represents more than a dozen high-profile institutional investors, now holds over 500,000 BTC – 50% of which has been accumulated in the past six months.
Yesterday, the Glassnode Studio analytics platform reported that Bitcoin’s mining revenue was back to pre-halving levels. The day before, miners earned a record $ 21.2 million in daily income since the start of the year, about three times the profit immediately after the halving.
Before Bitcoin Maxis gets too excited, however, it should be noted that the price of Ether has significantly outperformed Bitcoin over the same period, increasing by over 160% from $ 185 to $ 482 since the 11th. may.
[ad_2]
Source link