Bitcoin: Demand is Skyrocketing and Surpassing Miners' Production

The demand for Bitcoin is booming, to the point of causing serious problems. Indeed, investors are rushing to this flagship crypto, far exceeding miners’ production. While some fear a bubble, the data shows a clear trend: investors are accumulating Bitcoin at a frenzied pace. In this context, it is essential to understand what is really happening in the market and why investors are buying five times more than what miners produce.

Investors Hungry for Bitcoin

For the past few weeks, bitcoin, whose demand is weakening according to some analysts, has become the star of cryptocurrencies, or rather the fairground attraction that everyone wants. And for good reason, investors are buying bitcoin at a dizzying pace, five times higher than miners’ production. 

A figure that could well make even the most daring speculators dizzy. When you know that miners could only produce 14,000 BTC in the last month, you wonder where investors find their bitcoins! 

The previous post was when #Bitcoin was in the low 50ks, coming off the 1:1 global sell-off.

It's pretty much on cue with the trend.

All cohorts on aggregate (70k #Bitcoin) are now accumulating 5x the monthly issuance (14k BTC).

Big Demand at those price levels. https://t.co/jNxPCQMfNv pic.twitter.com/12p0f7NPqD

— James Van Straten (@jvs_btc) August 21, 2024

One thing’s for sure, they didn’t buy their coins in the flower market.

• 14,000 BTC: monthly miners’ production;
• 70,000 BTC: net investor purchases in the same period.

The phenomenon is partly explained by an exclusion of wallets related to centralized crypto exchanges (CEX). In other words, investors are jealously keeping their bitcoins, away from selling platforms, thus intensifying buying pressure. 

But be careful, such a frenzy could well end up burning the wings of those who take the risk.

The Crypto Market in Accumulation Mode

The bitcoin frenzy is not limited to just a few whales. All types of investors, from modest shrimps to giant cetaceans, have participated in this massive accumulation. The million-satoshi question: why now? In July, investors were fleeing bitcoin like the plague, preferring to sell rather than fill their pockets. 

Yet today, the trend has reversed. The situation is so tense that some wonder how long this accumulation can last before the market turns again.

“Investors have changed their strategy, and the crypto market is boiling“, explained a recent analyst. 

Bitcoin has thus become the forbidden fruit that everyone wants to bite into. But for how much longer? Market bettors are wondering whether this accumulation is just a flash in the pan or if it hides something deeper.

For more information on the issue of Bitcoin supply and market trends, you can check out this detailed article on the subject for ample explanations.