In early May, Bitcoin saw its block reward recently halved. This event halved the number of BTC coins issued per block from 12.5 to 6.25 coins, meaning that there was less supply to meet demand. Fortunately for buyers, demand is increasing rapidly, which indicates that Bitcoin is also increasing.
Institutions amass Bitcoin
According to technology data analyst Kevin Rooke, Grayscale Investments has seen an influx of Bitcoin investment activity in recent weeks. According to his analysis, the American company added 9,503 BTC to its trust holdings last week alone, while miners produced 6,863 coins over the same period. Grayscale bought these coins in response to customer demand for shares in the trust that are traded under the “GBTC” ticker.
Analysts see this as bullish because the customers of a single Bitcoin company absorb more coins than are minted every week. Apart from that, a similar trend can be observed with Grayscale’s other flagship product: the “Grayscale Ethereum Trust” (ETHE).A senior industry analyst commented on June 4 that the trust was traded at $ 239.50 per share, more than 1,000% more than the value of the Ethereum that supports the asset. This indicates a strong accumulation among small investors and institutions.