Bitcoin now deflationary due to Strategy's BTC purchases — Analyst...
Adam Livingston, author of "The Bitcoin Age and The Great Harvest." recently said that Strategy is synthetically halving Bitcoin by outpacing miner supply through high demand.
According to the author, the current collective daily miner output is approximately 450 BTC, while Strategy accumulates an average of 2,087 BTC per day — over 4 times the daily miner production.
Miner reserves are dwindling and are in a long-term decline. Source: CryptoQuant
Other institutions including hedge funds, pension funds, asset managers, and tech companies continue buying BTC as a portfolio diversifier or a treasury asset to hedge against fiat currency inflation.
ETF inflows have also helped to stabilize Bitcoin's price by injecting fresh capital from traditional financial markets, smoothing out the volatility of Bitcoin and making downturns less severe.
However, the most august institutional players — sovereign wealth funds — will not ramp up Bitcoin purchases until clear cryptocurrency regulations are established in the United States, according to SkyBridge founder Anthony Scaramucci.
Once a comprehensive regulatory framework emerges in the US, it will trigger large blocks of Bitcoin purchases by sovereign wealth funds, increasing Bitcoin's price, Scaramucci added.
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