The price of BTC has more than doubled since the Bitcoin block reward was halved for the third time in May. To be precise, BTC is up 110%; Their prices have jumped from $ 8,566 on May 11 to $ 18,000 at press time.
According to a November 19 report by cryptanalysis firm Chainalysis The liquidity level and the alternating currents have changed dramatically since the halving.
The company identifies illiquid or investor-held bitcoin as “wallets that send less than 25% of the bitcoin they ever received”.while the rest of the wallets are classified as liquid bitcoin or bitcoin in the hands of traders.
The chain analysis data shows this The number of Bitcoin available to new investors began to decline earlier this year, while the illiquid BTC rose sharply. Chainalysis estimates that the number of bitcoins currently liquid could only be 3.4 million.
The company attributes the decline in the supply of liquid Bitcoin to the build-up of institutional investors in wholesale in 2020:
From high profile investors like hedge fund director Paul Tudor Jones, who likened buying Bitcoin to an early investment in Apple or Google, to companies like Square, which invested $ 50 million, or 1% of their total assets, in Bitcoin, large financial firms, and Institutions are turning to Bitcoin. “
The cryptocurrency fund manager Grayscale Bitcoin Trustand currently represents more than a dozen high-profile institutional investors holds over 500,000 BTC, 50% of which was accumulated in the last six months.
Yesterday the analytical platform Glassnode Studio reported that Bitcoin mining revenues have returned to pre-halving levels. The day before, the miners posted record sales of $ 21.2 million per day, roughly three times the profit immediately after the halving.
Before the bitcoin maximalists get too excited, however, it’s worth noting that The price of Ether (ETH) has significantly exceeded that of Bitcoin over the same period, increasing more than 160% from $ 185 to $ 482 since May 11th.