Many have speculated that the vast majority of bitcoin leaving exchanges has been heading to Grayscale...
Based on the last 30 days of data, they are probably right!
Over the last 30 days 63,982 BTC has left exchanges.
Guess how much bitcoin went into the Grayscale Bitcoin Investment trust over that same time period?
Based on data from CryptoQuant, Grayscale has added 60,157 bitcoin over the last 30 days.
That means that Grayscale has likely soaked up a large percentage of the bitcoin leaving exchanges...
There are many reasons for this that I won't go into here, but if you are interested in understanding why this happening, I briefly touched on it in this post:
While this inflow of bitcoin into Grayscale doesn't represent new bitcoin buys, though some of it could be, it represents liquid supply being removed.
Every bitcoin sitting on an Exchange is a bitcoin that could potentially be sold.
Whether that is literally true is irregardless, the point is that the number of bitcoin available to be sold continues to go down and down and down.
Which means as more and more demand flows in, there is less and less standing in the way before prices have to go higher.
I've read several news reports about smaller Exchanges already having supply issues.
What happens when an Exchange doesn't have enough bitcoin to sell in order to meat demand?
They have to gap the price up to a point where sellers are happy to sell again.
We are probably getting close to a point when this will happen in the near future, even with Janet Yellen already pouring some cold water on bitcoin and crypto today.
Stay informed my friends.
Posted Using LeoFinance Beta