• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
Macro Investor Sees Bitcoin Supply Deficit as Grayscale Boosts Stockpiling
Nexo

Macro Investor Sees Bitcoin Supply Deficit as Grayscale Boosts Stockpiling

Yashu Gola by Yashu Gola
2 years ago
in Bitcoin
0
Advertisement

Bitcoin (BTC) traders and investors may face a supply deficit as major firms increase their stockpiling of the cryptocurrency, according to Dan Tapeiro of New York-based global macro fund DTAP Capital.

“SHORTAGES of Bitcoin [is] possible,” the founder tweeted on Thursday. “Barry Silbert’s Grayscale Investments Trust is eating up BTC like there is no tomorrow. If 77 percent of all newly mined turns into 110 percent, then it’s lights out.”

The statement came after Grayscale released its third-quarter financial report. The New York firm stated that it had amassed about $1.05 billion worth of cryptocurrencies for its investment products. Its benchmark public share, the Grayscale Bitcoin Trust (GBTC), has received the top portion of the said massive inflow – of about $720 million.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Meanwhile, a yearly outlook of Grayscale’s financial reports shows that it is raising its Bitcoin purchases against its mining supply rate every quarter. For instance, in the first quarter of 2020, the firm bought 27 percent of the Bitcoin mining supply. That figure surged to 70 percent in the second quarter, and 77 percent in the third.

bitcoin, btcusd, btcusdt, xbtusd, cryptocurrency, dollar, dxy
Grayscale BTC purchased against its quarterly supply rate. Source: Grayscale Investments

Mr. Tapeiro saw it as a sign of a potential shortage in the future. Bitcoin’s total supply stands at just 21 million. So far, miners have mined about 18 million BTC tokens. Atop that, Bitcoin’s tendency to reduce its supply by half after every four years ensure that there will be less of it available in the open market.

The macro analyst, meanwhile, also presented the deficit as a bullish indicator, stating that traders placing bearish bets on Bitcoin will face losses because its “price can go to any number.”

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Bitcoin HODLING Surges

Mr. Tapeiro’s statements also came amid a booming Bitcoin “HODLING” sentiment among mainstream firms.

According to data fetched by Bitcoin Treasuries, public companies now hold about $7 billion worth of BTC. They include global payments platform Square, public-traded software firm MicroStrategy, as well as a privately-held hedge fund dubbed as Stone Ridge Asset Management.

Other firms have also gained exposure in the Bitcoin market but via GBTC. They include Fny Investment Advisers, Boston Private Wealth, Rothschild Investment Corp, amongst others.

bitcoin, btcusd, btcusdt, xbtusd, GBTC
Companies invested in GrayScale’s GBTC shares. Source: MMCrypto

The high-profile accumulation sentiment also raised the possibility of a Bitcoin liquidity crisis should the demand increase.

Bullish Bells

Bitcoin’s increasing prominence in mainstream asset managers’ portfolios validated its role as a safe-haven, store-of-value asset amid economic uncertainty.

Investors led themselves to seek investment alternatives as they could not earn better yields from the US Treasuries and the US dollar. That was due to the Federal Reserve’s near-zero interest rate policy and the US government’s $2 trillion relief measure amid the coronavirus pandemic.

With the economy still not out of the “pandemic shock,” the US central bank vowed to keep lending rates lower until 2023. Meanwhile, the US Congress hoped to release another stimulus package after the November 3 presidential election. It stands deadlocked for now.

bitcoin, btcusd, btcusdt, xbtusd, GBTC
Bitcoin investors wait for the second stimulus package to continue their 2020 rally. Source: BTCUSD on TradingView.com

Bitcoin, at the same time, is promising to become an alternative to fiat. Companies see their dollar reserves losing value in the coming years. That has prompted them to reallocate some part of it to the cryptocurrency and similar products like GBTC.

As the HODLING continues, the price of Bitcoin would likely increase due to lower supply.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

El Salvador

El Salvador, Unfazed By The Bear Market, Buys 80 Bitcoin – Will Others Do The Same?

17 hours ago
Bitcoin Trading Volume Sinks Down Almost 60% In 9 Days

Bitcoin Trading Volume Sinks Down Almost 60% In 9 Days

1 day ago
North Korean Hackers

North Korean Hackers Suspected Of Perpetrating $100 Million Harmony Attack

2 days ago
Oslo Freedom Forum, Fode Diop on stage

3 Lessons From The Oslo Freedom Forum: Why BTC? Nabourema, Likhachevskiy, Diop

2 days ago
National Agency of Prospective Projects (NAPP) In Uzbekistan Green Lights BTC Miners

National Agency of Prospective Projects (NAPP) In Uzbekistan Green Lights BTC Miners

2 days ago
Short bitcoin

ProShares Short ETF Becomes Second-Largest Bitcoin Fund In Record Time

2 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.