Institutional Investors Outpace Bitcoin's New Supply: A Shift in Demand
Recent data reveals that institutional purchasing of Bitcoin has surpassed the daily mined supply for the first time in six weeks, signaling a crucial change in market dynamics.
Bitcoin institutional demand has surpassed new daily supply for the first time in six weeks, a pivotal moment for the market.
Key Highlights:
- Institutional demand for Bitcoin is currently 13% greater than the amount of newly mined BTC daily.
- The trend indicates that institution-induced supply reductions are returning as of early November.
- Over the past few days, Bitcoin Exchange-Traded Fund (ETF) outflows exceed $600 million.
Institutional Interest Resurfaces
According to data from Capriole Investments, institutions are now acquiring more Bitcoin than is being produced by miners.
This increase in institutional purchasing comes at a time when Bitcoin’s price remains more than 30% shy of the all-time highs reached in October.
Bitcoin institutional demand vs. mined supply. Source: Capriole Investments
Charles Edwards, the founder of Capriole, noted the challenges faced by market players during the retreat from $126,000 highs to lows of around $80,500.
“In the last month there have been no new treasury companies, but there have been first time treasury company sells pic.twitter.com/swXVJ9PvzS”
Translation: In the last month, no new treasury companies have emerged, yet some existing ones are selling their holdings.
Attention has shifted to Strategy, the firm boasting the largest corporate treasury, which continues to bolster its Bitcoin reserves despite a downturn in price performance.
Bitcoin ETF Dynamics
Summarizing market conditions, the analytics platform CryptoQuant described a contrast between immediate market pessimism and long-term strategic accumulation.
Edwards indicated that while Bitcoin may appear attractive based on its network fundamentals, corporate treasury behavior is complicating price recovery expectations.
US spot Bitcoin ETF netflows (screenshot). Source: Farside Investors
Data reveals a total net outflow from ETFs of approximately $635 million since Monday.
Disclaimer: This article is not a recommendation for investment. Readers are advised to perform their own research, as trading carries risks and uncertainties.
