Meltem Demirors. Source: a video screenshot, Youtube, Bloomberg Technology
Bitcoin (BTC) demand is already outpacing supply, sending another bullish sign to the market, according to Meltem Demirors, Chief Strategy Officer at the crypto asset management firm CoinShares.
“We’ve seen a tremendous number of inflows into bitcoin over the last two months alone. One interesting fact is that over the last two months, the demand for bitcoin has outpaced its supply,” Demirors said during an interview on Bloomberg Radio yesterday.
“[…] in the last two months alone, the amount of investor demand for bitcoin through things like Square’s Cash App, the Grayscale GBTC [bitcoin trust] product, and our XBT Provider product […], there’s been a 150% demand for bitcoin that exceeds the supply being produced, which to me, again, is a very bullish indicator,” she added.
Earlier in May, industry observers have already pointed out that the Grayscale Bitcoin Trust has indeed bought up more bitcoin since the halving than the amount that has been mined over the same period.
The difference is actually even bigger! Only 11,412.5 BTC were mined from the halving to the day of the latest 8-K report (May 11 – May 26). https://t.co/FDecJ1hxi3
— Bendik Norheim Schei (@bendikschei) May 28, 2020
Despite the decreased supply of new coins since the halving, however, bitcoin has struggled to break through the important price barrier at USD 10,000. After reaching that level on Monday evening, Tuesday once again saw heavy selling that brought the price of bitcoin back down to the USD 9,500 level.
Among the many theories about what caused the dip, the CEO of blockchain data provider CryptoQuant, Ki Young Ju, blames the sell-off on capitulation from an unknown mining pool.
Major mining pools usually send #BTC to exchanges periodically, but this largest unknown mining pool, they only move their Bitcoins when the price reaches THE TOP.
— Ki Young Ju (@ki_young_ju) June 2, 2020
Meanwhile, data from ByteTree shows that miners are now selling more BTC than they generate.
First spend tracks the number of coins that move from the miners’ wallets over that period. Source: terminal.bytetree.com
At pixel time (12:08 PM UTC), BTC trades at USD 9,643 and is down by 5% in a day and in the past seven days.