Even though most bitcoin miners decided to quit mining citing Bitcoin mining no longer profitable for miners after the recent price slump, but it looks like, investors are still hopeful as they are still stockpiling BTC in their personal wallets.
According to Bloomberg’s News reporter Olga Kharif, more and more investors are stockpiling bitcoin in their personal wallets. The report cited the data from Chainalysis, which is a blockchain analytics unit.
The report also concluded that the 30-day moving average that flows each month into wallets is on the rise for Bitcoin. For example, it crossed over $400 million on 1st November, which is 25% more than the June statistics that were around $300 million. This shows that investors are trying to take advantage of low Bitcoin prices and stockpiling them in their wallets in an expectation of a market rebound.
The trend is not only for individual investors, but some large institutions are also investing in Bitcoin and other cryptocurrencies anticipating a future price rise. For example, Grayscale Investments, a subsidiary of a large investment conglomerate Digital Currency Group (DCG) has invested heavily in Bitcoin in the last few months, and now owns 1% of the total BTC.
Similarly, Ethereum is also witnessing the same accumulation by individual and institutional investors. For example, the top 500 Ethereum wallets reported a rise of 80% ETH saves in these wallets since January 2018, according to the data compiled by TokenAnalyst. Ethereum Whales had around 11 million ETH saved in wallets on January 2018 which increased to 20 million by 30th November.
This amount of ETH saved in wallets equals $2.2 billion in value, and make up 15% of the total ETH in circulation. The trend clearly indicates that most of the investors in digital currency or optimistic about the market rebound in the coming future, and in order to make profits, they are buying BTC and ETH at low prices and saving them in their personal wallets.