Grayscale seems to be accumulating a large number of Bitcoins (BTC) each month. According to some reports, Grayscale Bitcoin Trust purchased 11,236 Bitcoin just in April. This shows the interest that the company has in the cryptocurrency and the whole space. The information was released by the crypto analyst @Rhythmtrader.
Grayscale Accumulates Large Sums of Bitcoin
Every single day, Bitcoin miners receive 1,800 BTC as a reward for the job they do for processing transactions on the Bitcoin network. This is a task that requires specialized machines and also a lot of energy, this is why miners get rewarded with BTC. In order to pay for their operations, these miners sell some of these coins to the market. This generates a stable and generally predictable selling pressure on Bitcoin.
However, it seems that a large part of the number of Bitcoins released to the market each day is purchased by the Grayscale Bitcoin Trust. According to @Rhythmtrader, the fund acquired 11,236 Bitcoin in April. Considering that each month 54,000 Bitcoin are mined, the company is purchasing 21% of the new supply of Bitcoin.
This changes the equations experts need to do when analysing how selling pressure from miners would affect the market. By purchasing such large sums of money, Grayscale Bitcoin Trust is helping sustain the price of the most popular digital asset.
Grayscale Bitcoin Trust accumulated 11,236 bitcoin in April alone.
Currently 54,000 bitcoin are mined per month.
Right now, they are buying up 21% of the new supply of bitcoin.
In a year, the halvening will double that number to 42% of the supply.
Institutions are FOMOing.
— Rhythm (@Rhythmtrader) May 29, 2019
It is also worth mentioning that Bitcoin is going to be halving as soon as in May 2020. Following past trends of Bitcoin, before a halving event, the digital asset tends to increase in price. This time, Bitcoin is going to be dropping its reward for miners from 12.5 BTC to 6.25 BTC. In this way,there will be around 27,000 BTC created per month. Grayscale would be purchasing 42% of the monthly supply of Bitcoin, which is extremely bullish for the largest crypto in the world.
The analyst says that because of this reason, institutions are starting to be worried about whether they will be able to enter the crypto market or not.
According to a new report released by Diar, the number of wallets holding between 1,000 and 10,000 Bitcoin have been increasing since the time the crypto market bottomed in December 2018. Thus, this shows that there was a large accumulative period during this time.
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