Bitcoin bulls are not running out of fuel.
On Friday, traders once again raised their bids for the world’s leading cryptocurrency, sending its prices to another record peak after Grayscale Investments, a New York-based crypto investment vehicle, added 1,672 BTC to its already-ballooning bitcoin stockpile. The firm now holds 655.44 BTC, worth almost $33.5 billion.
Grayscale’s accumulation spree removed more bitcoin from circulation against its rising demand among retail and institutional investors.
In a note published Thursday, analyst Ben Lilly highlighted that bitcoin investment made by Grayscale, Tesla, MicroStrategy, Ruffer Investments, Square, Bitwise, and other firms sucked more of the cryptocurrency out of supply than produced. Meanwhile, retail traders withdrew Bitcoin en masse from exchanges, adding further to the brewing liquidity crisis.
“It means bitcoin is in fact becoming scarce,” Mr. Lilly stated. “If this continues, a liquidity crisis will transpire pushing prices considerably higher.”
Bitcoin At Another Top
The BTC/USD exchange rate topped at $52,875 during the early