In performance, Bitcoin has outshined traditional instruments and has increased more than double in price since third halving in May.
Exponential Growth of 110%
The third Bitcoin halving occurred in May, and at that time the price value of the primary cryptocurrency was hovering around $8,000. The price of Bitcoin has surged from $8,566 at the time of halving to a current value of $18,000 after an exponential growth of 110%.
Crypto analytics firm Chainalysis reveals its latest report, which shows an outstanding growth in accumulation and liquidity, and capital flows over cryptocurrency exchanges have also changed dramatically.
The chart shared by Chainalysis distinguishes between trader-held BTC or liquid BTC and investor-held BTC or illiquid BTC. Due to high accumulation, the line of investor-held Bitcoin has jumped over recent months as shown in the chart while trader-held Bitcoin reduced in the performance.
According to Chainalysis’s data, Bitcoin’s availability to new investors has slumped this year, but on the other hand, investor-held Bitcoin jumped in 2020. The decreasing value of liquid Bitcoin is the major cause that investors’ accumulation of the top digital asset is surging. According to Chainalysis:
“From high-profile investors like hedge fund manager Paul Tudor Jones, who compared buying Bitcoin to investing early in Apple or Google, to corporations like Square, which invested $50 million or 1% of its total assets in Bitcoin, mainstream companies, and financial institutions are turning to Bitcoin.”
Prominent investment firm Grayscale is now holding more than 500,000 BTC, and the fund manager is handling the assets of high profile investors. Out of the total amount, 50% of it stored over the last 6 months.
Due to price increase, the miners’ revenue has also jumped. Analytics firm Glassnode Studio unveils revenue of mining becomes similar to the position witnessed before the time of halving. Yesterday, mining revenue has reached a total of $21.2 million, which is three times more than the value recorded after the halving.
At press time, Bitcoin is exchanging hands at $18,227 after an increase of 2.84% over the day and 12.11% over the week.