Grayscale Investments has been in the news a lot lately as one big Bitcoin buyer since the reward halving of May 11. Since the halving event, Grayscale has bought Bitcoins worth close to $500 million, making it the largest Bitcoin accumulator in the market.
3 Times The Mining Rate
An analysis by crypto expert Kevin Rooke estimates that the firm has spent around $184 million buying roughly 19,879 Bitcoins over the last one week. This puts its total BTC accumulation at around 53,000 BTC since the halving.
According to Rooke, the investment firm seems to be buying more Bitcoin than is being mined. Over the last week, miners produced 7,081 BTC, but Grayscale bought 19,879 BTC. That means that the firm is buying at a rate almost thrice the mining rate.
Grayscale Could Own 10% Of All Bitcoin By 2024
Over the last 6 weeks, since the halving happened, the firm has accumulated about 53,588 BTC. A simple break down of the firm’s buying rate puts the daily amount at around 1,190 BTC. Considering that there are currently around 18.4 million Bitcoins in circulation, Grayscale’s buying rate means that it will own about 3.4% of all the Bitcoin in the market by January 2021.
If that rate continues, the percentage will rise to 10% by the next expected halving slated for 2024. That will make Grayscale Investments a mega whale.
Besides the aggressive BTC accumulation, Grayscale seems to have an eye on Ethereum too. It currently holds close to $400 million in ETH.
What It Means For The Market
Grayscale’s move to accumulate lots of Bitcoin makes it a Bitcoin whale whose actions could affect the market in the future.
Bitcoin’s history has it that many market movements have been triggered by huge bag holders’ activity. In that case, Grayscale could be positioning itself in a prime spot to spur the market, and as far as investments are concerned, the movement can only be expected to trigger Bitcoin bulls in the future. Basically, Grayscale’s accumulation of BTC could very well work out in favor of the top coin in the long run.