Bitcoin Accumulation Continues Despite Price Correction?

7:37 am, Thu, 26 August 21

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After surging as high as $50,000, the flagship crypto asset Bitcoin has seen a slight price correction. It is currently trading at $46,836 (at the time of writing).

Many analysts and enthusiasts are of the opinion that this price correction was necessary if the price of Bitcoin is to surge even higher in the future. On the other hand, many individuals are still not convinced of Bitcoin’s significance and utility. One of the main reasons being the volatility that is associated with the overall crypto market.

However, a drop in the price makes it easier for major and minor entities to invest in the crypto asset and even accumulate it, as seen today. It has been reported, that despite the price correction, 1.2 million Bitcoin has been accumulated by asset managers and private and public companies.

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More Details to Know About Bitcoin Accumulation

The accumulation of the flagship cryptocurrency, regardless of its price volatility, can be taken as a positive indication. According to reports, the 1.2 million BTC accumulated by asset managers and companies is worth nearly $57 billion.

Asset managers have accumulated 4% of BTC’s supply, while the private and public companies each have gained 1%.

This is quite a prominent signal of an increase in the adoption of Bitcoin and other cryptocurrencies by institutions.

As per reports:

  • 14 Bitcoin asset managers and fund issuers currently hold 816,379 BTC (worth $40.1 billion)
  • Grayscale Bitcoin Trust manages around 654,600 BTC (worth $32 billion)
  • XBT Provider of CoinShare has 48,466 BTC (worth $2.4 billion)
  • The remaining 12 issuers represent 0.54% of the supply (113,313 BTC)

As far as companies are concerned, both private and public companies have also dived into Bitcoin’s pool. According to the data revealed, 34 public companies own Bitcoin at the moment.

  • MicroStrategy is one of the biggest names to hold BTC on its sheets. It has half of BTC held by the public companies and now owns 108,992 BTC (worth $5.3 billion)
  • Tesla is also not far behind with 20% of BTC held by private companies. The electric car manufacturer owns 42,902 BTC (worth around $2.1 billion)
  • Private companies have further accumulated 174,068 BTC (worth $8.5 million)
  • Block.One is a firm that holds 140,000 BTC (worth $6.8 billion)

The data mentioned above can signify that the flagship cryptocurrency will continue to a prominent role in the future. However, nothing can be said with certainty at the moment, since there is a lot of unpredictability that comes with it.

Nonetheless, it does highlight that the interest of institutional investors has greatly inclined towards BTC.

Will Ethereum be Left Behind?

Bitcoin and Ethereum are the top two crypto assets and have competed for quite some time. Ethereum has some advantages over Bitcoin, however, it has not yet outperformed the flagship crypto asset as many anticipated.

With Bitcoin’s importance being highlighted due to mass accumulation, many enthusiasts are wondering what it means for Ethereum.

In recent news, it was noted that Ethereum’s London upgrades initiated a burn mechanism. Due to this, the second-largest crypto asset is undergoing a supply shock.

In 21 days, 97,369 Ether (worth $313.5 million) has been burned, which means nearly 4,637 ETH daily.

How the burning mechanism and ETH’s upgrade work out for the crypto asset will be revealed soon.

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