$2.3B in Bitcoin exchange outflows dwarfs the amount of new BTC mined
From Oct. 15 to Nov. 15, Bitcoin (BTC) exchange outflows dropped from 2.5 million to 2.355 million, the lowest levels since August 2018. Approximately 145,000 BTC, worth $2.35 billion at a price point of $16,200, moved out of exchanges.
In the same period, Bitcoin miners mined around 27,000 BTC, equivalent to around $437.4 million. Since miners have been mining 900 BTC daily after the May 11 halving, 900 BTC times 30 days equals 27,000 BTC.
This aggressive accumulation trend seen in the Bitcoin market shows that investors anticipate a prolonged post-halving uptrend.
A block reward halving occurs every four years until the fixed supply of Bitcoin at 21 million gets reached.
After each block reward halving, the number of Bitcoin miners can mine per day declines by half. This means prior to the May 2020 halving, around 1,800 BTC were mined. Until the next halving in 2024, 900 BTC will be mined per day.
The amount of available Bitcoin on exchanges is significantly reduced since less BTC getting mined per day alongside rising exchange outflows.
If the demand for Bitcoin continues to rise, then the decline in supply would cause the value of BTC to surge. Hence, many investors might be expecting the price of BTC to see a prolonged uptrend in the medium term.
Bitcoin hash rate rebounds after huge difficulty drop
The growing hash rate of the Bitcoin blockchain is another potential catalyst for BTC heading into 2021.