Grayscale now consuming more BTC than is being created each day!

in hive-148441 •  last month 

Grayscale is chewing up all the new BTC and then some...

Remember how we wondered how the supply/demand economics would shake out post halving?

Specifically, how a decreasing new issuance rate combined with a constant demand level would impact prices...

Well, Grayscale just put out a very good example of how it's going to play out...

In an independent research report, it's estimated that Grayscale has consumed roughly 150% of all the new BTC created since the halving...

Check it out:

image.png

(Source: https://twitter.com/kerooke/status/1265779970183495680)

Grayscale demand via GBTC:

  • GBTC has purchased 18,910 bitcoins since halving

  • Only 12,337 bitcoins have been created since halving

Said in simpler terms, Grayscale is chewing up all the new supply and then some.

Not only is demand staying constant, but it may be increasing...

Digging deeper into the Grayscale numbers it looks like they have already seen roughly $384 million of inflows.

Compare that to the $388 million they saw in all of Q1, and it looks like they will blow that number out of the water as we still have 5 weeks remaining the quarter!

image.png

(Source: https://twitter.com/Z06Z07/status/1265832452175478784)

Not only is demand staying constant, but it looks like it could even be increasing.

Grayscale was one of the largest demand drivers of BTC for all of 2019 and it doesn't look like that is changing any time soon.

Once the supply and demand metrics start being felt by the price over the coming months, we likely have only one direction to go...

Up.

Hopefully it pulls our favorite altcoins up with it as well!

Stay informed my friends.

-Doc

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Very interesting indeed, I remember that article from a couple of years back saying if every millionaire in the U.S. alone bought 1 bitcoin that would exhaust the whole supply, without taking into account all of the coins that have been lost.

Yep, there is that as well. If there is a surge in demand there isn't enough supply to go around.

Incredible. This is really great news. Buying more Bitcoin.

Probably a good move. I am waiting for my gap fill down to about $7,600 before I add more. Though in all honesty if it's really going to go to $100k, it doesn't matter much if you buy at $9.5k or $7.5k, it just matters that you buy.

Buy buy buy..... every little dip.

hope fees don't go right along with it😭 but to be expected

They will, they always do, which is where altcoins come in. :)

This is great for the crypto market in general. There is going to be bull in the long run

Honestly at this point, I don't see how their won't be a big bull run in bitcoin...

It was mind-boggling to see this at first, and seeing how some are taking HODL'ing to the extreme! As you've put it well, this is a great example at how a post-Halving scenario looks like. Perhaps then, this Halving might be different from those that came before it anyways, with institutions going ham at buying into Bitcoin? I'm still wondering at how the market dynamics will react to this huge shift in demand...

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