Sirlibz
Grayscale Bitcoin Trust, one of the largest digital currency funds managers has been acquiring Bitcoin for a very long time now. Since the recent halving, Grayscale has been buying Bitcoin even more than the amount mined. Grayscale has recently really increased its investment capital into Bitcoin, Q1 of 2019, Grayscale invested weekly an average of $3.2 million. Q1 of 2020 has seen up to 900% being added to the market, Grayscale investing on average $29.9 million every week.
Rookes Data indicates that Grayscale is now purchasing an average of 1,112.35 BTC per day. This is double the amount they used to purchase.
Rookes data shows that Grayscale Bitcoin Trust purchased more than over 9,500 BTC out of the 6,800 mined last week. Grayscale has bought up to 24,413 BTC since the halving occurred on May 12, though only 19,200 BTC has been mined since then.
Bullish??
One might argue that all this buy does not affect BTC or where is the effect of them on the price of BTC or the crypto space, although the current price of Bitcoin does not reflect this buys, it is worth noting that Bitcoin has held steady between the 9,000’s. The buy pressure too at the moment is also worth taking note of, a lot of individuals are probably bullish with the news of what Grayscale is doing and are fixing buy orders in order for them not to miss the ride to the Moon.
Another reason one might say we’re bullish or in a bull market already is Bitcoins S2F model. This is a trading tool created by an anonymous Dutch early last year, the S2F ( Stock to Flow ) treats Bitcoin like other commodities like Gold and silver and tracks it using its scarcity of 21 million Coins. It evaluates the existing supply of Bitcoin against the amount of mined.
How it works
The S2F signals a Red dot after the first month of halving to possibly indicate a Bull Run. In this case, the first Red dot has appeared for 2020 has appeared after the halving since the last Bull market in 2017. The Chart indicates a possible rally up to $100,000 between 2020-2022. Just like every other market analysis too, none is absolute and as such some individuals have indicated that the tool is not efficient even Vitalik Buterin described the tool as overly bullish. But checking out the previous Red dots after the last halving, the S2F model has been right although the tool was created after those time periods.
When Rooke announced the increase in the average purchase of BTC by Grayscale Q1 of 2020, Barry Silbert, Founder of Graysacale replied saying “ just wait until you see Q2 of 2020. This might mean that they do not plan on stopping purchase for now since the demand from their clients is still high. This too puts a Bullish scenario before us.
Are we in a Bull market?? We will find out soon enough.
Disclaimer
Although we do not present ourselves as Financial advisors we do take a lot of time and effort to look up projects before reviewing them. Check out an article on SRK released by JRNY Crypto. SRK is up 300%.
