3 years ago
244 Some statistics showed that bitcoin’s rebound rally was more reliant on institutional investors than ever before. Within just 48 hours of Grayscale reopening its services to new traders on January 13, BTC’s price exploded by almost 20%. The latest surge pushed the flagship crypto to levels just under the $40,000 mark.
At the same time, the institutional investment company added 4,618 BTC to its portfolio at a current value of around $182 million. Grayscale’s cryptocurrency portfolio sits at $27.6 billion which is mainly bitcoin including last quarter’s intake of $3.3 billion.
Bitcoin is not the only coin that saw major support since January 13, the general crypto market added $137 billion to surge once again past a $1 trillion market capitalization.
Grayscale is back！Grayscale gains another 2172 #BTC in 24 hours. Their total AUM now $26.39 billion.
https://t.co/r1tmKT6a3r pic.twitter.com/lZlcJdNvTk
— Bybt (@bybt_com) January 14, 2021
With the growing demand from the institutional investors, BTC’s available supply is becoming majorly scarce. On January 13, eToro told its users that it expects to experience liquidity challenges for its cryptocurrency platform. The major exchange warned that it could limit margin trading and BUY orders over the weekend to cope.
Since BTC’s halving in May 2020, almost 900 BTC are getting mined daily. Glassnode, however, said that on average only 30% of these mined coins are ending up in exchanges since July 2020.
Within that period, Grayscale has acquired around 224,930 Bitcoin which translates to more than 1,200 BTC daily. The available supply is rapidly drying up since several other institutional investors are also acquiring the bitcoins.
Not all statistics suggest that institutional investors are playing a key role in crypto’s price nonetheless with Grayscale’s Ethereum Trust not getting the same interest over the past month. The balance has reduced by 6036 Ether since December 9 when it reached an all-time high of 2.94 million ETH. At that time, Bitcoin surged by 116% while Ethereum gained over 122%.
