In a recently released report, Ark Invest, an American investment management firm, sheds light on the current state of bitcoin (BTC). The report highlights the presence of “strong holders and improved institutional sentiment,” noting that approximately 70% of the circulating bitcoin supply has remained dormant for at least a year.
Ark Invest Report Emphasizes Strong Bitcoin Holders and Growing Institutional Confidence
Ark Invest, renowned for its focus on disruptive technologies, has published a comprehensive report analyzing bitcoin’s recent performance. Surpassing traditional assets, the leading cryptocurrency has surged over 80% against the U.S. dollar in the first half of 2023.
The report underscores the increasing interest from institutional investors, particularly following the filing of the Blackrock spot bitcoin exchange-traded fund (ETF). Ark’s researchers elaborate that the “balance of bitcoin on over-the-counter (OTC) desks, which serves as a proxy for institutional activity, reached a one-year peak.”
According to the report, the rising value of Grayscale’s GBTC indicates a potential shift in market sentiment. Ark points out that “the growing balances on OTC desks suggest a mounting focus on bitcoin by institutions and other major capital allocators.”
While institutional interest demonstrates strength, the report also highlights the robustness of bitcoin’s long-term holders. Ark’s researchers explain that “almost 70% of the 19.4 million circulating bitcoins have remained dormant for at least one year or longer, solidifying the holder base.”
These positive indicators for bitcoin coincide with an unparalleled tightening cycle, as emphasized in Ark’s report, which also touches upon macroeconomic events. Ark’s researchers perceive conflicting fiscal and monetary policies in the United States and warn of potential recessionary signals.
For instance, the report points out that a decline in new manufacturing orders suggests an imminent economic downturn. Despite the prevailing macroeconomic uncertainty, BTC has exhibited strength, finding “solid technical support at its 200-week moving average and closing the month 14% above it,” as highlighted in the report.
Frequently Asked Questions (FAQs) about Bitcoin supply
What does the Ark Invest report reveal about the supply of Bitcoin?
The Ark Invest report reveals that approximately 70% of the circulating supply of Bitcoin has remained unmoved for at least a year.
What factors contribute to the strong institutional interest in Bitcoin?
According to the report, the strong institutional interest in Bitcoin can be attributed to increased institutional activity indicated by growing balances on over-the-counter (OTC) desks, as well as the filing of the Blackrock spot Bitcoin exchange-traded fund (ETF).
How has Bitcoin performed compared to traditional assets?
Bitcoin has outperformed nearly every traditional asset, with an increase of over 80% against the U.S. dollar in the first half of 2023.
What does the report say about the strength of Bitcoin holders?
The report highlights that a significant percentage of Bitcoin holders, around 70% of the circulating supply, have not moved their holdings for at least a year or longer, indicating a strengthening of the holder base.
What are the macroeconomic events discussed in the report?
The report mentions conflicting fiscal and monetary policies in the United States and warns of potential recessionary signals, such as a contraction in new manufacturing orders.
How has Bitcoin’s technical performance been?
Despite the macroeconomic uncertainty, Bitcoin has shown strength, finding strong technical support at its 200-week moving average and closing the month 14% above it, as highlighted in the report.