A report indicates a steep accumulation slope of the Bitcoin supply in the hands of long-term holders. There is growing interest from institutional investors in the pioneering cryptocurrency.
In the last week, the price of BTC fell to the level of the previous week, when it dropped by 16%. However, the strong correction that started on September 7th did not prevent the BTC inventories on exchanges from declining.
On September 13th, there was an outflow of USD 1.2 billion worth of Bitcoin from exchanges, despite the downward trend. A report from Glassnode highlighted the steep growth slope of the Bitcoin supply in the hands of long-term holders (LTH).
The price has recovered from USD 43,118 to USD 47,323, by about 9.75%, this week.
The MicroStrategy Company Maintains a Bitcoin Accumulation Policy
In August 2020, MicroStrategy made its first purchase of Bitcoin to include it in its treasury, which they continue to do. The recent acquisition of 5,050 BTC led it to hold 114,042 BTC, with a paid total of USD 3.16 billion.
The company paid an average price of USD 27,713, an appreciation of that investment by 74%.
The Institutional Investment in Bitcoin Exceeds USD 70,000 Million
MicroStrategy leads publicly traded companies holding around 221,413 BTC, 1.2% of the supply. Private companies that have disclosed their investment in Bitcoin comprise 0.92% of the stock, holding 174,068 BTC.
Bitcoin ETFs and Bitcoin funds like Grayscale constitute the majority sector in cryptocurrency investment, with 4.34% of the supply. A graph by Willy Woo, updated with the latest CryptoStrategy purchase, shows an overview of institutional investment.
Figures from bitcointreasuries.org reveal that institutional investment in Bitcoin is more than USD 70 billion. The total of BTC held in the different investment patterns is 1,481,905 BTC.
Analysis of the Featured Chart of the Week
Many analysts agree on the shock of the BTC supply due to the increasing accumulation by holders who tend to sell little. A higher flow of BTC to long-term holders reduces the availability in the market to meet demand. A graph from Glassnode indicates the evolution of the supply shock alongside the price of BTC.
The upward momentum zones correspond to fluctuations in the price of Bitcoin derivatives favorable to the rise in the spot price. There is currently a noticeable increase in the supply shock, for which the bullish momentum could continue in October.
Bitcoin ETFs Are Still Awaiting the SEC’s Approval
Bitcoin ETFs and similar funds represent the dominant sector in institutional investment in Bitcoin. The approval of those exchange-traded funds following the price of Bitcoin has occurred in Canada before the United States.
The US Securities and Exchange Commission (SEC) postponed the decision to approve a Bitcoin ETF requested by the investment firm VanEck. That regulatory agency accepted the legally established 30-day period and will decide to approve or reject it on November 14th.
On September 14th, the president of the SEC, Gary Gensler, appeared before the US Senate Committee on Banking, Housing and Urban Affairs. She noted that Bitcoin and other cryptocurrency exchanges trade securities, so they must register with that commission.
By Alexander Salazar
