The price of Bitcoin has seen a huge surge and has almost doubled the price that was cut down to half in the month of May 2020. Chainanalysis had attributed a lot of the existing price that has shown bullish action for the unsatisfied appetite of the institutional investors.
In a more precise form, Bitcoin had stood to gain over 110% as the prices were rallying on 11th May from a mere $8,566 to a massive $18,000 test level since this moment and surging as you read this.
Bitcoin Doubling Analysis
According to a report of crypto analytics company Chainanalysis on the 19th of November, the liquidity levels, as well as the flows of exchange, have been continuously changing very dramatically from the time the prices of Bitcoin have been slashed down to half.
This business enterprise of analytics identifies the illiquid or the investor based Bitcoin that act as wallets which send below 25% BTC that is received by them. However, the remaining of the wallets are called liquid Bitcoin or the trader based Bitcoin.
The data gathered by Chainanalysis reveal the number of BTC which has been declining and has been available for the new investors. On the other hand, illiquid Bitcoin has been rapidly surging during that time. According to Chainanalysis, the total number of BTC which is presently liquid is estimated to be as low as that of 3.4 million.
The firm has declared that the decreasing number of the Bitcoin that is in liquid form for the wholesale assembly of institutional investors during this year of 2020 has been a profitable affair. Paul T. Jones, manager of the hedge fund, has compared purchasing BTC with investing in companies like Apple and Google. Also in companies like Square that has an investment of about $50 million which is almost 1% of the entire asset of Bitcoin.
The fund manager of cryptocurrency, Grayscale Bitcoin Trust, stands for over twelve very high profile investors from the institutional background and possess over 500,000 Bitcoin. Out of the 500,000 BTC, almost 50% of it had been accumulated in the past 6 months’ time itself.
However, Glassnode Studio had recently reported that the mining revenue of Bitcoin has once again returned to pre-halving levels. Before this report, BTC miners had been able to earn an annualized record that showed $21.2 million in revenue on every single day. This figure is believed to be almost thrice more than the earnings that were right after the halving of the Bitcoin prices.
Nonetheless, the supporters and maximalists of Bitcoin should calm a bit down and not get too excited with these reports. Ether prices have also shown some very important figures as they have outperformed BTC in that same time by increasing over 160% to a whopping $482 from a mere $185 since 11th May.