Institutional demand is influencing Bitcoin's market dynamics as entities accumulate Bitcoin at a rapid pace. According to Ki Young Ju, CEO of CryptoQuant, Strategy, a treasury company, is purchasing Bitcoin faster than it is being mined, resulting in an estimated annual deflation rate of -2.33%. Strategy currently holds 555,000 BTC, which is considered illiquid with no intention to sell. This accumulation means reduced BTC supply and increased prices. Michael Saylor, co-founder of Strategy, has encouraged other organizations to invest in Bitcoin as part of their portfolios. The daily miner output is around 450 BTC, but Strategy is acquiring approximately 2,087 BTC each day, thus impacting overall market supply significantly. Additional institutional investors, like hedge funds and sovereign wealth funds, are expected to enter the Bitcoin space once a comprehensive regulatory framework is established in the U.S., potentially driving prices even higher.

Source 🔗