In its latest figures, referring to the transfer of 270,000 bitcoins to personal wallets in the past 30 days, Glassnode says investors have taken a long-term approach to the market.
To Report Kevin Telegraph: Despite the rise in the price of Bitcoin, investors in this digital currency are looking for long-term investment by transferring their digital currencies to personal wallets. The transfer of 270,000 bitcoins to these wallets in the last 30 days is proof of this claim.
Referring to this volume of bitcoins, Glasnood states that at the beginning of this month, this number was 175,000 units of bitcoins.
In another part of the Glassnode report, it is stated that the liquidity of the Bitcoin market has been continuously declining over the past 9 months. Market liquidity is the sum of assets available for sale (mainly in exchange offices). The available liquidity is currently 21.3% and there is no sign of change.
The decline in liquidity in the bitcoin market can be considered an upward sign. On the other hand, new small and large investors want to reduce the supply of bitcoin; Because with a decrease in supply and assuming demand remains stable, we are expected to see an increase in the price of an asset. Glasnod estimates that about 80 percent of the 18.6 million units of bitcoin in circulation are stored in the wallets of exchange offices, hence the term market liquidity.
According to Glasnood, if more than 25 percent of the input is spent on a wallet, the wallet holder is placed in the market liquidity category. In other words, if the spending of a wallet is more than 25% of the amount entered into it, it falls into this category.
Of the 3.9 million bitcoins that Glassonood considers the available liquidity in the market, about 61% or 2.38 million units belong to centralized exchanges. CryptoQuant data show that stock exchanges have fallen 13.8 percent since July.
The increase of institutional investors and the increase of bitcoins in the market by them is one of the main factors in reducing the amount of these bitcoins. Bitcoin Treasuries estimates that 33 investment entities now own more than 1.2 million bitcoins, or 6.5 percent of the bitcoin supply.
In recent days, the stock of Bitcoin Grayscale has increased by an average of 25,000 units. Grayscale Bitcoin Investment Fund held 641,523.7 points yesterday. For better comparison, about 900 units of bitcoins are mined every day. On average, Glasnood reports, about one-third of that amount has gone to exchanges since July last year.
Data from the Swiss investment firm SwissBorg also show that in the second half of 2020, institutional investors bought 230 percent more bitcoins than newly extracted bitcoins. By increasing the demand of companies like PayPal and Square, and including the bitcoins that are lost forever every day, the demand is 500% higher than the bitcoins that are just being mined.
BlackRock, the world’s largest investment firm, recently wrote in a letter to the US Securities and Exchange Commission (SEC) that it may add bitcoin derivatives to its investment services. The company’s assets at the beginning of 2021 amounted to about $ 7.81 trillion, which is 7 times the total value of the digital currency market.