According to a report ARK Investment, in June 2023, Bitcoin experienced a resurgence in institutional sentiment, with the supply of Bitcoin that had remained unmoved for at least a year reaching an all-time high of approximately 70% of the circulating supply.
According to a report by ARK Investment, in June 2023, Bitcoin experienced a resurgence in institutional sentiment, with the supply of Bitcoin that had remained unmoved for at least a year reaching an all-time high of approximately 70% of the circulating supply. This development suggests a strong holding pattern among Bitcoin investors, a trend that is likely to impact the cryptocurrency’s future trajectory.
The month also saw a narrowing of the Grayscale Bitcoin Trust’s (GBTC) discount to Bitcoin’s net asset value (NAV), possibly due to Blackrock’s Bitcoin ETF application or indications that Grayscale had gained an edge during its trial against the SEC. This shift towards a one-year low in the GBTC’s discount to Bitcoin’s NAV could signal a growing institutional interest in the cryptocurrency.
Institutional activity in Bitcoin, as indicated by the balance of Bitcoin on OTC desks, hit a one-year high in June. This uptick in institutional activity coincides with BlackRock’s filing for a Bitcoin ETF, following ARK/21 Shares’ filing in April. The move by BlackRock, a global investment management corporation, suggests a growing acceptance of Bitcoin in traditional finance circles.
However, the global economy appears to be heading towards a recession, with recent data from the manufacturing sector indicating a decline in new orders in the Purchasing Managers’ Index, a proxy for future manufacturing activity. In 2022, the US Gross Domestic Product (GDP) declined for two consecutive quarters, implying a technical recession.
In other news, the SEC filed charges against Coinbase for operating as an unregistered securities exchange, broker, and clearing agency, and against Binance entities and founder Changpeng Zhao. Robinhood announced plans to delist tokens for Solana, Cardano, and Polygon after SEC suits named them as securities. Meanwhile, the Tether USDT stablecoin’s market cap climbed to an all-time high of $83.2B.
Despite these challenges, Bitcoin’s holder base and network activity remained strong in June, with active owners increasing by 9.1% and long-term holder supply increasing by 0.11%. These trends suggest a robust and resilient Bitcoin ecosystem, even in the face of potential economic downturns and regulatory hurdles.
