Bitcoin

when

<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/institutions-purchase-most-newly-issued-bitcoin" data-wpel-link="internal" rel="noopener noreferrer nofollow">Institutions Purchase Most Newly Issued Bitcoin</a><br></p>
<p style="text-align: justify">Bitwise Europe Research Director Andre Dragosch has drawn attention to an escalating issue in the <a href="https://en.bitcoinhaber.net/bitcoins-path-forecasted-by-sp-500s-record-highs" data-wpel-link="internal" rel="noopener noreferrer nofollow">Bitcoin</a> (BTC) market. According to Dragosch, institutional <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">investors</a> are currently acquiring nearly all of the newly issued Bitcoin supply.</p>
<h2 id="institutional-grabs-of-new-bitcoin-supply">Institutional Grabs of New Bitcoin Supply</h2>
<p style="text-align: justify">In a recent post on the social media platform X, Dragosch revealed that approximately 164,000 BTC issued each year are primarily bought by institutional investors. This scenario indicates a significant imbalance between supply and demand.</p>
<p style="text-align: justify">The situation is exacerbated when considering other major buyers not included in these figures. These include exchange-traded funds (ETFs), governments, cryptocurrency exchanges, and demand from decentralized finance (DeFi) protocols and smart contracts. Dragosch’s observations suggest a more severe supply shortage than most market participants are aware of.</p>
<h2 id="consequences-of-bitcoin-s-supply-shortage">Consequences of Bitcoin’s Supply Shortage?</h2>
<p style="text-align: justify">While the annual issuance of new Bitcoin supply stands at approximately 164,000 BTC, the overwhelming demand from institutions is expected to be much higher. This could further tighten the supply as large-scale buyers like ETFs and governments increase their Bitcoin acquisitions.</p>
<h2 id="concrete-implications-for-investors">Concrete Implications for Investors</h2>
<p style="text-align: justify">Investors should consider the following points:</p>
<ul>
 <li>Institutional dominance in BTC purchases could push prices higher.</li>
 <li>Limited supply may lead to reduced liquidity on trading platforms.</li>
 <li>ETFs and government acquisitions could further exacerbate supply issues.</li>
</ul>
<p style="text-align: justify">According to CoinMarketCap <a href="https://newslinker.co/how-does-artificial-intelligence-work/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">data</a>, out of the total 21 million Bitcoin supply, 19.75 million have already been mined. Not all of this BTC is accessible; estimates suggest that 3 to 4 million BTC are lost, meaning 15 to 20% of circulating supply is inaccessible. This supports the potential supply crisis outlined by Dragosch.</p>
<h5><span style="font-weight:bold;font-size:16px">Continue Reading: </span> <a href="https://en.bitcoinhaber.net/institutions-purchase-most-newly-issued-bitcoin" data-wpel-link="internal" rel="noopener noreferrer nofollow">Institutions Purchase Most Newly Issued Bitcoin</a></h5>

Institutions Purchase Most Newly Issued Bitcoin

Table of Contents

BH NEWS

Other articles published on Sep 6, 2024

Hamster Kombat to Launch $HMSTR Token and Airdrop on Sept. 26

Cardano To Re-enter Crypto Top 10, CZ Release The BNB Booster? Revenue Sharing Redesigned With Ga...

Bitcoin Heading Towards 50,000 Dollars?

Key US Economic Data Influences Bitcoin Market

Senior FED Member Speaks After Critical US Employment Data! Will Interest Rate Cuts Come?

Bitcoin At $56,000: Why Aren’t Professional Traders Panicking?

Join our free newsletter for daily crypto updates!