The price of BTC has doubled since the reward for the third block of Bitcoin was halved in May. To be precise, BTC is up 110%, with prices rising from $ 8,566 on May 11 to $ 18,000 at the time of writing.
Liquidity levels and currency flows have changed dramatically after being cut in two, according to a November 19 report from cryptocurrency analytics firm Chainalysis.
The company defines illiquid bitcoin, or investor-owned, as “wallets that send less than 25% of the bitcoins they have ever received”, and the rest of the portfolios are classified as floating bitcoins or bitcoins owned by a trader.
Chain analysis data shows that the number of bitcoins available to new investors began to decline earlier this year, while illiquid BTC rose sharply. Chainalysis estimates that the amount of floating bitcoins can be as high as 3.4 million.
The company explains the decline in the offer of floating bitcoin with the lag behind institutional investors’ wholesale sales in 2020:
“ From big investors like hedge fund manager Paul Tudor Jones, who compared to buying bitcoin with an early investment in Apple or Google, to companies like Square, which invested $ 50 million or 1% of the total capital in bitcoin, and big companies and financial institutions are to bitcoin. ”
The director of the Grayscale Bitcoin Trust, which represents over a dozen large institutional investors, now owns over 500,000 BTC, of which 50% has been collected in the last six months.
Analyst platform Glassnode Studio reported yesterday that Bitcoin mining revenues have returned to the levels they were before they were cut in two. The day before, the miners had an annual record income of $ 21.2 million per day, which is almost three times the profit immediately after six months.
Before bitcoin extremists get too excited, it should be noted that the price of Ether (ETH) has surpassed bitcoin significantly in the same period, rising more than 160% from $ 185 to $ 482 since May 11th.