Chainalysis: "Low supply and high demand are helping BTC to grow"

According to Chainalysis, more than 77% BTC mined are on investors wallets, Whereas new buyers come to the market. The ratio of demand and supply contributes to the growth of BTC.

According to the results of a new study
Analytical company Chainalysis, Institutional investors have influenced the reduction of the BTC purchase proposal and the subsequent increase in cryptocurrency price.

“Although the total amount of BTC in circulation is growing every day, actually available for purchase, the number of coins depends on that, whether the owners want to sell them ", – Chainalysis analysts say.

Currently 77% Of the extracted 14.8 Milln BTC, Excluding coins, access to which is lost, are in inactive wallets - at addresses, from which "less 25% BTC ever arrived on them ".

“It leaves the pool in just 3.4 Milln BTC, available for buyers as demand grows ", – declares Chainalysis.

Liquidity and BTC price over time. Source: Chainalysis

Chainalysis analysts indicate large investments in Bitcoin from Square and Microstrategy as the main factors of institutional investment growth factors. This growth was beneficial for North American exchanges, on which since January 2020 year there is an increase in the pure inflow of BTC.

"This is what, What we expected, Since institutional investors, Basically based in North America and Europe, It is more likely to buy BTC on these exchanges, as due to simplicity of use, and for regulatory reasons ", – declares Chainalysis.

After the purchase, investors adhere to Hodl strategies. At the same time, new users enter cryptocurrency markets, and the number of active addresses of bitcoin in the middle of the month
To the level of the end 2017 of the year. Exchange with support for fiat currencies also observe the inflow of BTC.

“These factors, In combination with BTC accumulation by large investors, which choose long -term storage of cryptocurrency, created a unique situation. Now, those who seek to purchase BTC for the first time buyers and planning to exchange fiat currencies for BTC to protect against anxious macroeconomic tendencies, users form most of the current demand ”, – Notes Chainalysis.

Recently the managing director of Deutsche Bank Jim Reid said, that recently, bitcoin has become more popular as a means of preserving wealth, And investors are increasingly choosing BTC instead of gold.