More often than not, people actively wonder who is responsible for buying up the newly mined BTC on the network. As it turns out, institutional investors may play a bigger role in this process than originally anticipated.
Unlike traditional forms of money, Bitcoin has not hit an actual supply cap as of yet.
Instead, there will be an ongoing process of minting new BTC for another 120 years, until 21 million BTC have been reached.
Recently, the Bitcoin network saw its block reward cut in half, as occurs every four years.
With fewer BTC being generated on the network every day, the scarcity effect begins to kick in slowly.
It now seems that institutional investors show a keen interest in buying up these minted BTC after the recent block reward halving.
The overall “stockpiling” of Bitcoin by these investors has increased significantly.
GBTC, for example, has bought up 17% of all generated BTC since the halving took place.
If that is an indication of what the future may hold, things are bound to get very interesting.
With more Bitcoins being bought up globally, a price increase seems likely to occur.
So far, the world’s leading cryptocurrency continues to struggle to break the $10,000 mark in a convincing manner once again.
As Ethereum's price spike reignites optimism, many investors are moving their focus away from…
Crypto investors are scared when the market goes down. But smart people like Donald…
Following the same rhythm observed since Solana's recent price surge with transfers from FTX and…
In a decisive strategic move that demonstrates an increasing institutional interest in artificial intelligence tokens,…
In the last day, the Virtuals ecosystem, part of the AI agent industry, has not…
In a major move for the altcoin space, XRP has now moved ahead of Tether…