On-chain data shows that bitcoin investors have recently been acquiring supply equivalent to 5.5 times what miners have produced.
Cohorts of bitcoin investors have been busy accumulating recently
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Investor cohorts here refer to groups of holders divided based on the amount of cryptocurrency they own. In the context of the current topic, no particular group is of interest, but all of them collectively are.
Below is the chart shared by Straten, showing what the net flow into btc investors' wallets has been looking like recently.
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/06/Bitcoin-investors-buy-55-times-what-miners-produce.jpeg" alt="bitcoin Cohorts Versus Issuance” width=”828″ height=”473″/>
The value of the metric seems to have been positive in recent weeks | Source: x.com/jvs_btc/status/1798809042300665868/photo/1" target="_blank" rel="noopener nofollow">@jvs_btc on x
As the chart above shows, bitcoin investors as a whole have been making net inflows into their wallets, suggesting that accumulation has been their dominant behavior.
The analyst has also attached the network's Monthly Emission data in the same graph. The “Issuance” here refers to the amount of btc miners produce by solving blocks. The Monthly Issuance is a measure of this amount over the last month.
It is clear from the chart that bitcoin investor accumulation has recently been greater than monthly issuance. This would mean that investors have been purchasing btc faster than miners can produce it.
More specifically, btc investors have purchased 71,000 btc in the last thirty days, almost 5.5 times what miners minted in the same period: around 13,000 btc.
The chart also shows that, over the past year, cohorts of holders have been continuously collecting btc more than miners have been producing, except for a few stretches.
How is it possible that investors have been able to buy more than what is minted? Where does the extra bitcoin come from? The answer is exchanges. Centralized exchanges are not included in the investor cohorts and are where holders have been withdrawing coins.
As noted by another analyst at CrypotQuant Quicktake bitcoin-Exchange-Reserves-Impact-Market-Prices-An-Insightful-Analysis” target=”_blank” rel=”noopener nofollow”>mailThe bitcoin Exchange Reserve has been experiencing a sharp decline for a while now.
<img loading="lazy" decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/06/Bitcoin-investors-buy-55-times-what-miners-produce.png" alt="bitcoin Exchange Reserve” width=”1280″ height=”720″ data-recalc-dims=”1″/>
Looks like the value of the indicator has been stuck in a downwards trajectory over the last couple of years | Source: bitcoin-Exchange-Reserves-Impact-Market-Prices-An-Insightful-Analysis" target="_blank" rel="noopener nofollow">CryptoQuant
As for how bitcoin investor demand compares to recent ETF inflows, Straten has noted that these investment vehicles have added $1.4 billion worth of btc to their inventories in the latest wave. On the other hand, the monthly net accumulation of investors amounts to more than 5.1 billion dollars.
Therefore, market demand has been quite considerable recently, even despite the dramatic inflows that ETFs have experienced.
btc Price
Following its surge earlier in the week, bitcoin has become a bit stale as its price is still trading around $71,000.
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The price of the coin appears to have been moving sideways during the last few days | Source: BTCUSD on TradingView
Featured image from Dall-E, CryptoQuant.com, Glassnode.com, TradingView.com chart