Institutional investors are wiping out the Bitcoin supply. Almost 3 percent of the Bitcoins (BTC) in circulation as of the time of translation release are in the hands of these investors as long-term investments.
According to the data, 24 formations have collected more than 460,500 BTC, worth $ 22 billion at Bitcoin’s current price.
Michael Novogratz said that this copy excludes 3 million BTC, which is thought to be completely lost. Novogratz predicts supply shortages if organizations continue to buy BTC at the same pace.
Among these 24 entities, MtGox KK with 141,690 BTC ($ 6.6 billion), Block.one with 140,000 BTC ($ 6.5 billion), MicroStrategy with 71,000 BTC ($ 3.3 billion) and Tesla with 38,500 BTC ($ 1.8 billion).
Analysts think that holding Bitcoin in company reserves will soon become the standard, as there are many technical reasons to view Bitcoin as a protection against inflation.
First, BTC has a limited supply in circulation and in this regard, it imitates gold as a store of value. Moreover, there is no way to increase the Bitcoin supply through mining.
Large investors, on the other hand, purchase large amounts of BTC and move them to cold storage, further reducing the circulating supply.
BTC rose to the top of the list of all tradable assets, surpassing Tesla with this week’s rise.
Although buying Bitcoin has been seen as a bold move in the past, it is increasingly making sense among institutional investors.