We are in the midst of a major supply crunch

Are you curious why bitcoin is going up so easily right now?

A big part of that is Grayscale.

They have been soaking up bitcoin at a torrid pace over the last several months and it seems to only be accelerating.

In the month of December for example, Grayscale added almost 73k bitcoin while there was roughly only 28k bitcoin mined:

(Source: https://twitter.com/Coin98Analytics/status/1344887679712784384/photo/1)

That statistic says "bitcoin bought", but that isn't technically the case.

With the Grayscale Bitcoin fund being closed for a couple weeks now, the vast majority of those bitcoin seemed to be in-kind exchanges.

Where bitcoin investors are exchanging their bitcoin for shares of GBTC.

While some might argue that is not the same as bitcoin being bought off exchanges, I'd like to remind you that those bitcoin had to be bought at some point and once they go in the Grayscale Trust, they don't come out.

Since creation, GBTC has only increased its bitcoin holdings, it has never sold any.

That means that while that bitcoin might not technically have been bought, it does remove supply out there.

Some of that supply had to have been sitting on exchanges as we see the balance on exchanges continuing to fall while the balance sitting in GBTC continues to grow.

This supply crunch means it's getting easier and easier to push prices higher.

We are likely just getting started here folks.

Stay informed my friends.

-Doc

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