It has been an eventful week in the Bitcoin market, with an uptick in large public buyers such as MakroStratégia, És a Luna Alapítványi Őr, announcing, or completing significant Bitcoin purchases. With Bitcoin having a deterministic supply schedule and ultimate supply hard-cap, these events represent yet another step towards Bitcoin being perceived by the market as a form of pristine collateral.
The market traded relatively range-bound this week, between a low of $44,427, and a high of $48,083, consolidating after the recent price rally.
The perception and utilisation of Bitcoin as a form of financial collateral has been a steadily growing trend, and continues to span into new applications and use-cases. The Luna Foundation Guard (LFG) was a dominant buyer throughout last week, with the ultimate intention to use accumulated BTC as a backstop for the UST algorithmic stablecoin. In addition, inflows into wrapped WBTC, Canadian ETFs, and general investor accumulation on-chain has been historically strong, especially following the local price lows set on 22-January.
In this edition, we will explore a range of major supply sinks for Bitcoin, and characterise the accumulation behaviour over the recent weeks. Accumulation is being driven by both Shrimps (< 1BTC) and Whales (> 1k BTC), alongside these specific public entities (read more on our research describing Shrimps, and Whale holding denominations).
Összefoglaló
- Exchanges continue to see significant net coin outflows, with aggregate exchange balances hitting multi-year lows. BTC is flowing out of exchanges at a rate of over 96k BTC/month, signalling historically strong accumulation is taking place.
- Accumulation is being driven by Shrimps (<1 BTC) and Whales (>1k BTC), both of whom have added significantly to their balances over recent weeks.
- Large scale accumulation by the Luna Foundation Guard has taken place, with an increase of total holdings by 21,163 BTC over the last 9-days. Additionally, the total supply of wrapped Bitcoin on Ethereum (WBTC) has grown by 12.5k BTC showing a continuous demand for BTC as collateral in DeFi products.
- Coins have continued to flow into Canadian Bitcoin ETF products, with total holdings increasing by 6,594 BTC since 22-Jan This is a 10.5% growth in coin holdings, despite the plethora of macro and geopolitical risks and headwinds that are in play.