Latest data reveals that Bitcoin investors are actively accumulating the cryptocurrency at a rate five times higher than that of miners’ production.
Significant Net Accumulation by Bitcoin Investors
In a recent analysis by James Van Straten, the demand from Bitcoin investors has been shown to exceed the monthly issuance on the network.
The monthly issuance refers to the new Bitcoins mined by miners on the network as block rewards. The comparison between miner production and investor accumulation over the past year is illustrated in the chart below.
This data includes various types of investors, from small to large holdings. While the market balance was negative last month, it has now turned positive with a notable spike, indicating a shift in trend.
Investors seemed hesitant in July but have since increased their buying activity, surpassing miner production significantly. Investors acquired a net 70,000 BTC compared to the 14,000 BTC monthly issuance, indicating a fivefold difference.
This accumulation is possible as exchanges are excluded from these investor cohorts. When coins move to exchanges, it reflects as selling pressure, resulting in a negative balance change.
This strong accumulation by Bitcoin investors is a positive signal, indicating a reduction in supply from central entities’ wallets.
It remains to be seen how long this accumulation trend will continue, as it has only recently turned positive.
Bitcoin Price Movement
Bitcoin briefly surged above $61,000 before retracing to $60,600. The chart below depicts the recent price action of the cryptocurrency.
