A technology researcher known as Kevin Rooke has been tracing the amount of Bitcoin held by public companies in the past two years. According to his data, these companies now hold more than $3.6 billion worth of BTC.
Rooke shared a tweet with this data saying that public companies held fewer than 20,000 BTC last year, but this value has changed today, with 19 public companies holding 105,837 BTC.
Last year, public companies held fewer than 20,000 BTC on their balance sheets.
Today, 19 public companies hold 105,837 BTC on their balance sheets, valued at over $3.6 billion. pic.twitter.com/errn21r0mt
— Kevin Rooke (@kerooke) January 25, 2021
The biggest holder is MicroStrategy with 70,784 BTC followed by Galaxy Digital with 16,402 BTC. On the bottom of the list is BTCS Inc. with 63.65 BTC and Neptune Digital Assets with 57 BTC. The largest company by market cap among these is Square Inc. by roughly 4,700 BTC.
Public companies alone have accumulated around 85,000 BTC in just one year, an equivalent of $2.67 billion. The trend indicates the rapidly growing institutional demand for BTC, as shown by increased trading activity on Grayscale and CME.
Grayscale’s products and CME Bitcoin futures market both mostly cater to institutions. They have recorded a massive uptick in volume since mid-2020.
Investors and corporations have been affected by the rising inflation and liquidity injections from central banks, hence the need to hedge their holdings and portfolios. According to Winklevoss, inflation robs people of their life’s work. In the past three years, the Argentine peso has lost 50% of its value against USD, which can explain the skyrocketing search interest in Bitcoin.
Inflation robs you of your life's work. The Argentine peso has lost 50% of its value against USD in the past 3 years. And that's saying a lot given the current state of the U.S. dollar. No wonder search interest in #Bitcoin is going through the roof. https://t.co/X6KAKKaU6r
— Cameron Winklevoss (@cameron) January 25, 2021
The Biden administration can create a more favorable environment for Bitcoin and gold to rally by putting in efforts to ease financial conditions and aggressively introducing more stimulus.
Analysts are slightly cautious in the foreseeable future despite the compelling macro environment. Macro analysts claim to be leaning towards a bullish scenario for Bitcoin. According to Alex Kruger, an economist and Bitcoin trader, Bitcoin is stuck between the $29k-$35K range, and it can break either way.
$BTC is stuck in a range within a range: 29K-35K. It can break either way. The key reason I lean bullish is interest rates. Exuberance has rinsed off the system dramatically, as relected in falling rates. This is a bull market, and traders are now bearish. That's bullish.
— Alex Krüger (@krugermacro) January 27, 2021
In addition, there are expectations that more institutions will accumulate BTC in the coming weeks because the futures premium held through the last three dips and top traders buying the dip. Further, the derivatives market has reset with futures market becoming less crowded.
Kruger added more signs of a healthy cool down such as flat or negative funding and perpetuals trading below spot.
Funding is either flat or negative. Perpetuals are trading below spot. The perp-spot basis has not been negative for this long since pre Nov elections, And the annualized quarterly basis has dropped from 25%-28% a week ago to 7-10% now. All sings of a healthy cool-down.
— Alex Krüger (@krugermacro) January 27, 2021
Image courtesy of pixabay
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