Within 48 hours of Grayscale reopening its services to new investors on Jan. 13, Bitcoin’s price skyrocketed nearly 20%, once again hovering just below $ 40,000.
The same period has the institutional investment firm added Added 4,618 BTC to its portfolio at a current value of $ 182 million. Including the intake of $ 3.3 billionMostly made up of BTC, Grayscale’s crypto wallet stands at $ 27.6 billion.
Bitcoin isn’t the only coin to have received strong support since January 13, with the addition of the entire crypto market $ 137 billion rebound above a market cap of $ 1 trillion.
– Bybt (@bybt_com) January 14, 2021
With the increasing demand of institutional investors, the available supply of Bitcoin is becoming increasingly scarce. Yesterday, big stock exchange eToro announced to users it expects to face liquidity issues for its crypto platform, and warns it could restrict margin trading and BUY orders on weekends to cope.
Since Bitcoin’s halving at the end of last year, around 900 BTC are mined every day. According to crypto analysis platform Glassnodehowever, since July 2020, on average only a third of them are actually sent to exchanges.
During the same period, Grayscale has purchased approximately 224,930 Bitcoin, which is equivalent to more than 1,200 BTC per day. If we do not take other institutional investors into account, the available supply dries up quickly.
Not all statistics suggest that institutional investors play a core role in the price of cryptocurrencies, but because Grayscale’s Ethereum Trust has not received the same interest over the past month. The balance has actually decreased by 6,036 Ether since December 9, when it hit a record high of 2.94 million ETH. During that period, Bitcoin was up 116%, but Ethereum was up more than 122%.