Bitcoin prices have recently adjusted to new heights, and the basic dynamics of stricter supply and increased demand have supported the rise, according to a report compiled by London crypto custodian Copper.co.
Buyer has made the case that the recent price increase is a function of the ever-increasing demand for bitcoins BTCUSD,
and the growing scarcity of the asset with a maximum supply of 21 million, which is expected to be hit by 2140. The researcher also said that the biggest interest in new bitcoins comes from North America, and especially the US.
About 18.625 million bitcoins were created, or digitally exploited in the language of cryptocurrency enthusiasts, according to CoinMarketCap.com, but a large portion of them have been lost, the people at Copper write.
According to their estimates, 56% of the bitcoins are owned by investors, 18% are lost, 15% are owned by so-called traders and the rest have yet to be mined (see attached graph):
via Copper.co
Buyer said that because the majority of investors are long-term owners, representing eight out of ten owners of the cryptocurrency, the appetite for the world’s most popular digital asset could have an extraordinary effect on the values.
The researchers said that the rise of bitcoin to more than $ 40,000 already preceded Tesla Inc. TSLA,
submitted its surprise to regulators on Monday, declaring its $ 1.5 billion investment in bitcoin, and its decision to finally allow customers to buy its products with bitcoin.
‘Data shows that new investors see prices much higher in the
last six months of 2020, to obtain north of 2 [million] bitcoins, ”Copper’s researchers wrote in the study.
‘To be able to buy bitcoin in such large quantities, the price has risen
well above the $ 20,000 mark that helped convince early investors
to sell their cryptocurrency above the previous all-time high, ”they said.
According to the report, the crypto market is dependent on a new offering of about 3.2 million bitcoins on exchanges held by traders.
The study also found that investors who owned at least 1,000 bitcoins for about three months increased their holdings by 173% in 2020.
The growing demand, coupled with the limited supply, helped increase bitcoin values to a total market value of about $ 800 billion, and Copper said North American buyers were the biggest demand for Asian miners.
‘The price increase is the result of a demand and a marriage with liquidity
happened in early 2020 when outflows from scholarships – that is
bitcoins that are moved under their own supervision – has increased significantly, ”the company’s research found.
Buyer also made an interesting finding, noting that nearly a third of bitcoin trading volume occurs during the period when the New York Stock Exchange is open and investors need to focus on trading in the Dow Jones Industrial Average DJIA,
and the S&P 500 index SPX,
The fact that so much bitcoin trading takes place during stocks between 09:30 and 16:00 in the East may explain why S&P 500 moves are sometimes seen as correlating with bitcoin prices, Copper wrote.