According to report by ARK Investment, in June 2023, Bitcoin experienced a resurgence in institutional sentiment, and Bitcoin’s supply, which had remained unchanged for at least a year, reached an all-time high of approximately 70% of circulating supply. This development suggests a forceful trend continuing among Bitcoin investors, a trend that will likely impact the cryptocurrency’s future trajectory.
The Grayscale Bitcoin Trust’s (GBTC) discount to Bitcoin’s net asset value (NAV) also narrowed this month, likely due to the apply of Blackrock’s Bitcoin ETF or signs that Grayscale has gained leverage during its lawsuit against the SEC. This shift towards the lowest GBTC discount to Bitcoin’s NAV in a year could signal growing institutional interest in the cryptocurrency.
Institutional activity in Bitcoin, as indicated by Bitcoin balances on OTC desks, reached a yearly high in June. This enhance in institutional activity coincides with BlackRock filing to create a Bitcoin ETF following its ARK/21 Shares filing in April. The move by BlackRock, a global investment management corporation, suggests Bitcoin’s growing acceptance in classic financial circles.
However, the global economy appears to be heading towards a recession, with the latest data from the manufacturing sector showing a decline in up-to-date orders in the Purchasing Managers’ Index, an indicator of future manufacturing activity. In 2022, U.S. gross domestic product (GDP) declined for two quarters in a row, representing a technical recession.
In other news, the SEC has filed charges against Coinbase for operating as an unregistered securities exchange, broker and clearing agency, as well as Binance entities and founder Changpeng Zhao. Robinhood announced plans to remove Solana tokens, Cardanoand Polygon called them securities after SEC lawsuits. Meanwhile, the market capitalization of stablecoin Tether USDT rose to an all-time high of $83.2 billion.
Despite these challenges, Bitcoin’s holder base and network activity remained forceful in June, with the number of energetic holders increasing by 9.1% and the supply of long-term holders increasing by 0.11%. These trends suggest a stalwart and resilient Bitcoin ecosystem, even in the face of a potential economic downturn and regulatory hurdles.
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