Bitcoin (BTC) may have shed $ 10,000 in a week, but the cryptocurrency “supply crisis” is more realistic than ever.
According to the latest data from monitoring supplier Glassnode, the stock exchange’s BTC reserves are completely depleted.
Everyone wants BTC
A vivid description of investor strategy: Foreign exchange reserves have fallen sharply in recent months – and continue to decline, despite ambiguous price dynamics.
Scammers seem to be talking instead of trading or selling, even if they’re over $ 60K.
On Coinbase, the largest US exchange, BTC shares have fallen nearly $ 8 billion at current prices since January, or 150,000 BTC.
Coinbase, a popular destination for large institutional shoppers, confirms its ongoing appetite for Bitcoin, and Cointelegraph previously reported that large chunks of BTC leave their books in cold storage.
Coinbase BTC balance chart. Source: Bybt
Statistician Willie Wu commented last week, “IMO, what happens are US institutions and the wealthy who receive affordable coins from weak hands and open them up as strong traders in response to monetary inflation.”
“The drop in Coinbase BTC’s supply from the cliff indicates that this is where US institutions are being bought.”
These “strong” hands have bought supplies that advanced during each price correction last year, with “crazy optimistic” results, Wu added.
GBTC is worth opening at 14% off
For Grayscale Asset Manager, conditions remained contentious as the Grayscale Bitcoin Trust ($ GBTC) traded at a 14% off spot rate this week.
The near-record high discount in GBTC premium is likely due to the liquidity constraint of those who bought shares six months ago.
At the time, GBTC was valued at around $ 11.17, which equates to a positive premium of about 12% above the spot rate. Now, even with a negative premium, the stock is equal to $ 44.50.
Grayscale faces stiff competition from new institutional investment vehicles: NEW will cut fees this week as Morgan Stanley prepares to introduce one of its funds to its investors.