Bitcoin is growing increasingly scarce, and its price movements are finally showing it.
Recent data from the on-chain analytics platform IntoTheBlock shows that a significant portion of the available BTC is stored securely for the long term.
Long-Term Bitcoin Holders Remain Resilient
Long-term Bitcoin holders have significantly increased their investments in the asset since mid-2021 and have maintained their holdings throughout the bear market. Only on a few occasions has there been any reduction in their share of supply.
As of October, 80% of Bitcoin is owned by long-term investors. The figure represents a record high for the leading cryptocurrency, which has finally started to show signs of price recovery, with a recent rally above $35,000.
Additional data shows heavy accumulation around the $25k-$31k area, indicating “long-term bullishness among investors.” In the past month, Bitcoin has gained more than 25%. The latest price action has helped long-term holders break the previous record set in 2015.
ITB data also revealed that the upcoming Bitcoin halving will further reduce inflation, making the asset even more scarce. A similar bullish sentiment was also expressed by investment banking giant Morgan Stanley, which said in a recent report that the upcoming event next year will spark a new bullish trend.
However, the latest rally is mainly driven by renewed optimism over spot Bitcoin ETF approval in the United States. Investors around the world are closely following regulatory developments involving the asset at the Securities and Exchange Commission (SEC). To date, the financial regulator has not approved any spot Bitcoin ETF.
Several companies such as Grayscale Investments, ARK Investments, BlackRock, and Fidelity have submitted applications to the SEC for various Bitcoin ETF offerings and are currently awaiting a regulatory decision. Experts suggest that approval should be received by early 2024. Such developments are expected to accelerate purchases.
Unlocking Bitcoin’s Pent-Up Institutional Demand
Institutional investors are showing substantial interest in Bitcoin, but are holding off on buying until a spot BTC exchange-traded fund (ETF) receives regulatory approval, according to Paul Brody, global blockchain leader at Ernst & Young (EY). Are installed.
During a segment on CNBC’s Crypto Decrypted, Brody asserted that BTC is garnering substantial demand from institutional investors due to the lack of a spot Bitcoin ETF for the long term. He emphasized that trillions of dollars from institutional sources are ready to flow into Bitcoin as soon as such funds get the green light.