The present amount of Bitcoin held on leading crypto exchanges suggests a likely bullish bias on the price of Bitcoin as business entities and large organisations continue to accumulate the crypto asset at record levels despite the strong dollar and rising U.S Treasury yields.
Just recently, MicroStrategy a leading institutional investor of the flagship asset revealed that it had purchased an additional 253 bitcoins for $15.0 million in cash at an average price of $59,339 per bitcoin.
Microstrategy further revealed it had about 91,579 bitcoins acquired for $2.226 billion at an average price of $24,311 per bitcoin.
MicroStrategy has purchased an additional ~253 bitcoins for $15.0 million in cash at an average price of ~$59,339 per #bitcoin. As of 4/5/2021, we #hodl ~91,579 bitcoins acquired for ~$2.226 billion at an average price of ~$24,311 per bitcoin. $MSTRhttps://t.co/OMQMhA85xw
— Michael Saylor (@michael_saylor) April 5, 2021
In addition, recent data form Glassnode suggests that Bitcoin miners are hoarding the world’s most popular crypto at record levels rather than selling, thereby limiting supply for the highly prized crypto asset as seen in recent days.
— Documenting Bitcoin 📄 (@DocumentingBTC) April 4, 2021
The crypto analytic firm further revealed that institutional buying further reduced the amount of Bitcoin on the world’s most valuable crypto exchange amid growing institutional participation.
The report placed particular interest on the amount on Bitcoin at Coinbase, a preferred venue for accumulation by US institutional investors.
The chart shows the BTC balance on Coinbase over the past year
We can see that in December 2020, the game changed. As BTC price approached the previous cycle all-time high at $20k and market confidence grew, serious institutional accumulation commenced. This started with 37,400 Bitcoins withdrawn in December.
Accumulation at rates exceeding +130,000 BTC/month have been consistently maintained throughout this bull market.
Holders were nervous on the rally from $12k to $18k and distributed some coins (box #4).
A significant volume of coins matured/HODLed (+207k BTC/m) as price broke above last cycles ATH as shown by large green bars in Box #3.
Maturing and HODLing of coins continues today with a rate of change hitting +195k BTC/m this week.
It is fair to also note that only 21 million Bitcoins are ever going to be produced in total, and presently, there are about 18.6 million BTCs in circulation, with about 4 million BTCs already lost forever. Taking the present demand for the flagship crypto into consideration, crypto pundits argue that the price will likely continue north except global bureaucrats limit its usage.
At the time of writing this report the crypto asset was trading at $58,674.11 on the FTX Exchange with a daily trading volume of $52,206,280,871 . Bitcoin is up 0.42% for the day.
Bitcoin ETF in North America has reached $1 billion in assets
The first North American Bitcoin ETF has already reached $1 billion (C$1.25 billion) in assets less than two months after its launch.
According to a statement from its issuer, the first North American Bitcoin ETF has already reached $1 billion (C$1.25 billion) in assets less than two months after its launch. What exchange-traded funds did to the conventional investing market for decades could happen to cryptocurrency players in a fraction of the time.
Investors are clamoring for crypto exposure, particularly in an exchange-traded fund wrapper, and the product from Toronto-based Purpose Investments, ticker BTCC, has seen a lot of interest. Although there are many crypto funds in Europe that work similarly to ETFs, this is the first ETF anywhere.
More than $165 million worth of shares were traded on the fund’s first trading day in February, a big start for a fund in the much smaller Canadian ETF market.
Its rapid cash accumulation reflects the high demand for Bitcoin products in the United States, as issuers compete for approval of the first Bitcoin ETF in the nation. Despite regulator resistance to accept the tactics, at least eight companies, including VanEck Associates Corp. and WisdomTree Investments, now have live applications with the Securities and Exchange Commission.
On Tuesday, Bitcoin surged to an all-time high of about $63,246 ahead of Coinbase Global Inc.’s upcoming IPO later this week.
There is an increasing expectation that a bitcoin ETF will be available in the United States in the not-too-distant future. Gary Gensler, the nominated chairman of the Securities and Exchange Commission, has taught cryptocurrency classes. The bitcoin market has exploded in popularity in recent months, attracting the attention of major financial institutions. Bitcoin ETFs are once again being sought by VanEck, Fidelity, and others.
One advantage of ETFs is that shares can be readily created and redeemed to arbitrage away any discount or premium, which could greatly broaden their appeal. ETFs are also cheaper, which will put pressure on fees across the bitcoin ecosystem. Hence market sentiment may push the ETF higher.
Bitcoin is on fire, breaks above all-time high
The flagship crypto traded at $62,645.26 with a daily trading volume of about $60 billion.
Bitcoin prices ascended to a record high on Tuesday, hitting another milestone at above $62,000, a move that many reaffirm to be a bullish trend in the cryptoverse and one that can make other digital assets surge.
At the time of writing this report, the flagship crypto traded at $62,645.26 with a daily trading volume of about $60 billion. Bitcoin is up 2.99% for the day. The world’s most popular crypto now has a market value of about $1.17 trillion.
Adding credence to the strong bullish run in play is data retrieved from Glassnode pointing to the fact that holders of the flagship crypto are selling less, as Bitcoin deposits on exchanges hit a 30-day low.
BTC Number of Exchange Deposits (7d MA) just reached a 1-month low of 2,837.702.
— glassnode alerts (@glassnodealerts) April 13, 2021
More details later…
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