According to a report by ARK Investment, in June 2023, Bitcoin experienced a resurgence in institutional sentiment, with the supply of Bitcoin that had been flat for at least a year reaching an all-time high of approximately 70% of the circulating supply. This development suggests a strong holding pattern among Bitcoin investors, a trend that is likely to affect the future trajectory of the cryptocurrency.

The month also saw a reduction in the Grayscale Bitcoin Trust (GBTC) discount to Bitcoin’s NAV, possibly due to Blackrock’s Bitcoin ETF application or indications that Grayscale had gained an advantage during its trial against the sec. This shift towards a one-year low in GBTC’s discount to Bitcoin’s NAV could signal growing institutional interest in the cryptocurrency.

Institutional activity in Bitcoin, as indicated by the balance of Bitcoin on OTC desks, hit a one-year high in June. This uptick in institutional activity coincides with BlackRock’s filing for a Bitcoin ETF, following the ARK/21 Shares filing in April. The move by BlackRock, a global investment management corporation, suggests a growing acceptance of Bitcoin in traditional financial circles.

However, the global economy appears to be headed for a recession, with recent data from the manufacturing sector indicating a decline in new orders on the Purchasing Managers’ Index, an indicator of future manufacturing activity. In 2022, the US Gross Domestic Product (GDP) declined for two consecutive quarters, implying a technical recession.

In other news, the SEC has filed charges against Coinbase for operating as an unregistered exchange, broker, and clearing agency, and against the entities of Binance and founder Changpeng Zhao. Robinhood announced plans to remove tokens for Solana, Cardano, and Polygon after SEC lawsuits named them as securities. Meanwhile, the market capitalization of the Tether USDT stablecoin rose to an all-time high of $83.2B.

Despite these challenges, Bitcoin’s holder base and network activity remained strong in June, with active owners up 9.1% and holder supply up 0.11%. long term. These trends suggest a robust and resilient Bitcoin ecosystem, even in the face of potential economic downturns and regulatory hurdles.