After Donald Trump’s election, the Crypto market was optimistic, and investors rushed to buy Crypto assets, especially Bitcoin. According to recent data, the asset’s exchange supply dropped precipitously after the US presidential election.
Data released on Monday, December 9, by Steno Research senior Crypto researcher Mads Eberhardt, shows that investors have removed an unprecedented 181,000 BTC from exchanges in the month following the US elections. This amount is equivalent to around $18 billion at current exchange rates.
This represents only 36.2% of the 500,000 Bitcoin tokens removed from exchanges this year. A national Bitcoin reserve is one of many pro-Bitcoin pledges made by the president-elect, who has sparked a Bitcoin rush.
Bitcoin surge is driven by supply
If there is a decline in supply and steady or rising demand, as suggested by the most current data, the asset’s price could increase. The withdrawals from the exchange have contributed to the asset’s performance since the election. In particular, the asset’s value has increased by more than 47%, reaching all-time highs above $100,000 from a starting point of approximately $67,850.
Interestingly, public firms are leading the latest Bitcoin surge. Some companies have been buying up shares at an alarming rate recently, including Metaplanet, Marathon Digital, and MicroStrategy.
Bitcoin Treasuries reports that since the election, MicroStrategy has bought approximately $17 billion worth of bitcoins—more than 171,430 in total. On Monday, December 9, the company revealed that it had bought 21,550 bitcoins for $2.1 billion between December 2 and 8, its most recent buy.
Companies add Bitcoin to boost value
Companies are starting to include Bitcoin in their financial statements more and more to boost value. This is because investors seeking exposure to the leading digital currency typically buy stocks related to these companies. Please do not consider this content to be financial advice.
It is merely informational. This article may include the author’s thoughts and opinions, but The Crypto Basic does not endorse them. We recommend that readers conduct thorough research before making any investing decisions. In the event of monetary loss, Crypto Basic is not to blame.
Summary
With 181,000 BTC, or around $18 billion, removed from exchanges in the month following the US presidential election, the quantity of Bitcoin on the market fell sharply. The combination of rising demand and a precipitous drop in supply caused Bitcoin’s price to skyrocket, setting new records exceeding $100,000 with a 47% rise. Some public companies have been making substantial Bitcoin purchases, including Marathon Digital, Metaplanet, and MicroStrategy, the former of which has spent $17 billion on the cryptocurrency since the election. More and more businesses are including Bitcoin in their financial accounts to increase value and attract investors.
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