Despite the prevailing market condition in the flagship crypto market, crypto investors are rapidly locking up their Bitcoin assets for the long haul, with 273,000 Bitcoin being taken out of circulation in the past month.
What you should know: Data retrieved from the crypto analytic firm, Glassnode, revealed that “liquid” Bitcoin addresses have shed 270,000 BTCs over the past 30 days, up from 175,000 Bitcoin at the start of January 2021.
At the time of writing, Bitcoin was trading at $34,771.82 with a 24-daily trading volume of $66 Billion. Bitcoin is down 3.63% for the day.
What this means: Increased buying pressure from large pocket investors might be the significant force driving the scarcity of Bitcoin, as about 33 institutional investors have stashed more than 1.2 million Bitcoin, or 6.5% of BTC’s circulating supply.
Recall Nairametrics, some days ago, disclosed how challenging it had become to buy bitcoins, as about 78% of BTCs in circulation (18.9 million BTCs) was held by large entities that had been holding bitcoin as long-term investments.
- Only 21 million BTCs are ever going to be produced in total, and presently, there are about 18.9 million BTCs in circulation. This shows a differential of about 2.1 million BTCs that are left to be produced, not forgetting that about 4.5 million Bitcoin have been lost forever.
- It also means that liquidity is drying up, as demand for the world’s most popular crypto hits record highs.
A study by Glassnode explained the reasons for the difficultly in buying Bitcoin:
“It is estimated that only 4.2M BTC or 22% of the total supply of BTC is in constant circulation and available for buying and selling. In other words, 78% of the circulating supply of BTC is considered illiquid.”
In a recent study by @glassnode, it is estimated that only 4.2M BTC, or 22% of the total supply of BTC, is in constant circulation and available for buying and selling. In other words 78% of the circulating supply of BTC is considered illiquid. #Crypto https://t.co/2fzMWv1GQ1 pic.twitter.com/onbjhGBho2
— BKCoinCapital (@BKCoinCapital) December 31, 2020
Data retrieved from Glassnode also revealed that “78% of the Bitcoin Supply is Not Liquid,” meaning the majority of Bitcoins available are not for sale and kept by many crypto investors for wealth preservation.
Chinese photo-editing app, Meitu buys $40 million worth of Bitcoin & Ethereum
Crypto experts argue that such strong demand in the Bitcoin market is largely attributed to the fact institutions are coming
The Share value of a Chinese photo-editing app, popularly known as Meitu Inc surged as much as 14.4% this morning after the Chinese company known for its beauty-focused app said it had bought $40 million worth of Ethereum and Bitcoin.
The Chinese technology firm, late-night yesterday revealed in its most recent filing that it bought $22.1 million worth of Ether and $17.9 million worth of Bitcoin on March 5 in a report credited to Reuters.
Meitu is the latest global firm holding Crypto as a form of its treasury operations. About a month ago, Tesla Inc revealed it had bought $1.5 billion of Bitcoin, which sent the world’s most popular crypto’s price up 20%.
So fast Ethereum has printed gains of about 530% while the flagship Crypto’s yearly returns stand at about 430%.
Meitu said it was buying the popular Cryptos for investment and partly as preparation to enter the blockchain community and that it would support such purchase from its existing cash reserves.
Meitu is evaluating the possibility of integrating blockchain technologies into its businesses based abroad, which could include projects on the Ethereum blockchain network.
Recall some days back, a leading global bank, Citi had suggested the flagship crypto-asset could “become the currency of choice for international trade,” thanks to its “decentralized design, lack of foreign exchange exposure, fast (and potentially cheaper) money movements, secure payment channels, and traceability.”
Crypto experts argue that such strong demand in the Bitcoin market is largely attributed to the fact institutions are coming.
The market liquidity is tightening at the flagship Crypto market, as there are less than 4 million BTCs in circulation available for upcoming investors including the likes of Grayscale, Paypal, Microstrategy, hedge funds, MicroStrategy Inc.’s Michael Saylor purchased more Bitcoin to raise the enterprise-software company’s holdings to more than $4 billion.
Dogecoin could eventually hit $1
Dallas Mavericks owner, Mark Cuban is predicting the price of the Dogecoin will eventually hit $1,
Dallas Mavericks owner, Mark Cuban is predicting the price of Dogecoin (DOGE) will eventually hit $1, after few days of accepting the crypto as a form of payment.
In a recent tweet, posted by the American-based billionaire, Cuban revealed customers had used more than 20,000 Dogecoin — roughly $1,018 at the time of writing this report — in transactions for his basketball team claiming the franchise was now “the largest Dogecoin merchant globally .”
Cuban anticipates that if basketball fans were to purchase 6,556,000,000 DOGE worth of Mavericks merchandise, the price of the token touch will “definitely hit $1.”
The @dallasmavs have done more than 20,000 #Dogecoin in transactions, making us the LARGEST #DOGECOIN MERCHANT IN THE WORLD ! We thank all of you and can only say that if we sell another 6,556,000,000 #DOGECOIN worth of Mavs merch, #dogecoin will DEFINITELY HIT $1 !!!🚀🚀🚀
— Mark Cuban (@mcuban) March 6, 2021
Cuban was known for creating the video portal, Broadcast.com with Todd Wagner in the mid-nineties and sold it to Yahoo for $5.7 billion in 1999.
Today he owns the NBA’s Dallas Mavericks and has stakes in Magnolia Pictures, AXS TV, and dozens of small startups.
According to Forbes, Mark Cuban is valued at about $23.4 billion at the time of writing this publication.
What you should know: Dogecoin is a type of digital coin that is decentralized and facilitates peer-to-peer digital transactions. This means you can send money online with much ease. It’s usually referred to as “the internet currency.”
It is different from BTC’s proof-of-work protocol in many ways, one of which is the Scrypt technology. The fast-growing altcoin also has a block period of 1 minute, and the total supply is unlimited, meaning that there is no limit to the amount of Dogecoin that can be mined.
“The recent rise of dogecoin, a meme coin, should serve as a reminder to everyone in the space that the most popular use case for crypto is still pure speculation,” said Anil Lulla, a former analyst at Bloomberg and co-founder of the cryptocurrency research firm, Delphi Digital.
- Dogecoin (DOGE) is based on the popular “Doge” Internet meme and features a Shiba Inu on its logo.
- The open-source crypto was invented by an American known as Billy Markus and an Australian identified as Jackson Palmer. The crypto asset was forked from Litecoin in December 2013.
- This fast-rising crypto is being primarily used as a tipping system on popular social media platforms like Twitter and Reddit in order to reward the creation or sharing of quality content.
Crypto exchanges presently having Dogecoin listed include YoBit, BitAsset, Binance, Huobi Global.
Nairametrics | Company Earnings
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