As you can see from the above chart, bitcoin investors tend to have net inflows into their wallets, suggesting that hoarding is the dominant behavior.
The analysts also attached the network's monthly #issuance data to the same chart. "Issuance" here refers to the number of bitcoins that miners mine by unlocking a block. Monthly issuance is a measure of that amount over the last month.
The graph shows that the accumulation of bitcoins by investors has recently been higher than the monthly issues. This means that investors are buying bitcoins faster than miners are #mining .
More specifically, investors bought 71,000 #TopCoinsJune2024 in the last 30 days. That's 5.5BTC, which is about 13,000 times more than miners mined in the same period.
The chart also shows that over the last 1 year, the holding group has been more consistently buying bitcoins than miners have mined, except in some segments.
How could an investor buy more than was mined? Where does the extra #bitcoin come from? The answer lies in the exchange itself. Centralized exchanges are not part of the investor group, and it is where holders withdraw their coins.
As another analyst pointed out in a Cryptquant Quicktake post, bitcoin exchange reserves have been experiencing a sharp decline for some time.
As for how investor demand for bitcoin relates to the recent influx of funds into ETFs, Straten notes that these investment products added to BTC reserves during the recent rush, while monthly net investor savings exceeded 1.4 billion baht.
Read also: Open interest in Bitcoin reaches a new historic high: will the price be next?
Thus, demand in the market has become very important recently, even despite the dramatic inflows seen in ETFs.
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