Increase in Institutional Interest in Bitcoin Leads to New ATH in Supply Stagnation

• According to Ark’s analysis, nearly 70% of circulating Bitcoin has not moved for at least one year.
• In June, Bitcoin closed at $30,460 and showed a monthly increase of 11.9%.
• Last week, Ark stated that BlackRock’s ETF application could be a “turning point” for Bitcoin.

According to ARK Invest’s new report, 70% of circulating Bitcoins have not moved for 1 year; Institutional sensitivity towards BTC is improving.

ARK Invest’s Bitcoin Report Released

In Ark Invest’s latest Bitcoin report for June, attention was drawn to the support from strong investors and the improving institutional sensitivity towards Bitcoin, the leading cryptocurrency.

According to Ark’s analysis, nearly 70% of circulating Bitcoin has not moved for at least one year, indicating the strengthening of investors and the confidence of long-term Bitcoin investors.

In June, Bitcoin closed at $30,460 and showed a monthly increase of 11.9%. The cryptocurrency found strong technical support at the 200-week moving average level and closed above 14% of the bearish level.

Improving Institutional Sensitivity

Since BlackRock applied for a spot Bitcoin ETF on June 15, the discount rate of the Grayscale Bitcoin Trust (GBTC) based on asset value has decreased from 42% to 30% and reached its lowest level in a year. The narrowing discount rate may reflect the market’s expectation for Bitcoin ETF approval and increase the likelihood of GBTC becoming an ETF.

Last week, Ark stated that BlackRock’s ETF application could be a “turning point” for Bitcoin. A few days later, Cboe corrected an application to distribute a BlackRock-like surveillance sharing agreement that includes Ark’s own Bitcoin ETF application. According to Bloomberg, Ark is in the lead in the race for a spot Bitcoin ETF, including Invesco, Valkyrie, and Fidelity’s applications.

Meanwhile, Bitcoin balances on over-the-counter (OTC) desks, serving as an indicator of institutional activity, reached the highest level in a year in June, with OTC Bitcoin balances increasing by 60% at the end of the quarter. This increase indicates that institutions and major capital allocators are increasingly focusing on Bitcoin as an investment option.

Stablecoin Trends

The report also highlighted a divergence in trends between USDC and Tether. While USDC has experienced a 37% decrease in supply since the beginning of the year, Tether has increased by 25% and reached an all-time high in June. Ark noted that this divergence is due to the uncertain regulatory environment in the United States pushing some crypto activities overseas and the issues that arose after USDC temporarily froze in March when Circle disclosed its failed Silicon Valley Bank’s USDC reserves of $3.3 billion.

Despite positive indicators for Bitcoin, Ark’s report drew attention to economic challenges. Data from the manufacturing sector shows a decrease in new orders in the Purchasing Managers’ Index. In addition, the US Gross Domestic Product (GDP) has shown consecutive contractions, indicating a possible recession.