Robert Kiyosaki expressed his stance on potentially investing more in Bitcoin if its price plummets to 0, as economist Harry Dent has forecasted. Cryptoquant data reveals that Bitcoin miners are selling off their holdings in anticipation of the network’s upcoming halving event, which is expected to impact their rewards. JPMorgan has speculated that the SEC […]
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Miners Offload Bitcoin in Anticipation of Reward Halving, Says Cryptoquant
Data from Cryptoquant indicates that bitcoin miners have been offloading their assets in anticipation of the upcoming Bitcoin network halving, slated to take place in two weeks. Cryptoquant highlighted a peak in daily sales to over-the-counter (OTC) trading desks, a figure unmatched since the summer of 2023. Record Sales to OTC Desks Mark Bitcoin Miners’ […]
Bitcoin News
Genesis Seeks Court Approval to Offload $1.4 Billion in GBTC Assets Post-SEC Settlement
After reaching an agreement with the U.S. Securities and Exchange Commission (SEC), the bankrupt company Genesis Global Capital has submitted a petition to the bankruptcy court to dispose of holdings from Grayscale’s Bitcoin Trust, Ethereum Trust, and Ethereum Classic Trust. These assets are estimated to be worth approximately .59 billion, and the debtors argue that selling and converting the trust assets into cash would mitigate any potential risks associated with price volatility to the estate and aid in the allocation of funds to creditors.
Genesis Seeks Bankruptcy Court Nod for Crypto Trust Asset Liquidation
In a legal document submitted by Genesis, the shuttered cryptocurrency company intends to offload its holdings in GBTC, ETHE, and ETCG. Genesis clarifies that the bankruptcy court’s committee, the ad hoc group, and Gemini have consented to back the proposal. The document states that the suggested deals ought to be sanctioned without any liens, claims, or obstacles. Additionally, Genesis is required to obtain approval from the sponsor, Grayscale, before proceeding with the sale, transfer, or redemption of the shares.
The motion states:
The debtors believe it would be beneficial to have the authority to sell and liquidate the trust assets to reduce any risk that fluctuations in price might have on the debtors’ estates and to facilitate distributions to creditors.
The request for a proposed sale comes in the wake of recent weeks’ GBTC outflows, which resulted in the trust’s bitcoin holdings decreasing from 617,079.99 BTC on Jan. 12 to the present 478,337.43 BTC. Concurrently, GBTC’s assets under management (AUM) have diminished from .93 billion to the current estimate of .53 billion. This move to sell follows Genesis’ settlement with the SEC, where the firm was mandated to disburse million to the U.S. financial watchdog.
After Genesis submitted its court filing, Gemini shared on its website its satisfaction with the development. “Late yesterday, Genesis filed a motion authorizing [the] sale of trust assets. This is an important step forward following the approval of the Grayscale Bitcoin Trust (GBTC) as an exchange-traded product (ETP) on January 10th,” the company stated.
What do you think about Genesis’ plan to offload trust shares? Let us know what you think about this subject in the comments section below.
Sell Pressure Mounts On Bitcoin As Miners Offload More BTC
CryptoQuant data on January 20 shows an unusually sharp spike in Bitcoin miners’ outflow, an unexpected development considering the solid performance of BTC prices in the past few trading days.
Miners’ Position Index (MPI) Rising
The Miners’ Position Index (MPI) is up from -0.85 registered on December 31, 2022, to +3.25 on January 19, 2023. The expansion could indicate that miners are moving their coins, at a faster pace, to centralized exchanges.
The MPI is a moving ratio between the total miner outflows to the total one-year moving average of the total miner outflows. All denominations are in USD.
Per CryptoQuant’s interpretation, the higher the MPI ratio, the higher the odds that miners are sending mined coins to centralized exchanges, heightening the risks of a price plunge.
For a wholesome picture, it is recommended that the MPI be used with other metrics since there are assumptions that miners are expressly selling their coins in top exchanges like Binance, Coinbase, or even in over-the-counter (OTC) exchanges.
Nonetheless, when used with different technical indicators, MPI flows can provide a rough indicator of Bitcoin miners’ financial state. The actions of the miners may provide an indication of where the market might be headed next.
In proof-of-work networks like Bitcoin, miners are compensated with coins to secure the platform against external attacks and confirm transactions. Bitcoin distributes 6.25 BTC for every block they successfully mine. This translates to around 1,000 in BTC. A block is released roughly every 10 minutes.
The price of Bitcoin explains the higher interest from miners compared to other proof-of-work networks like Litecoin. With a hash rate of 275 EH/s as of January 20, Bitcoin remains the most secure blockchain by this metric.
Bitcoin Miners Have to Sell
Miners have to expend energy and buy gear and this is why they are said to be mandatory sellers. Miners, therefore, have to move coins to crypto exchanges for cash to pay for services such as electricity or chipset manufacturers to remain competitive.
Since the Bitcoin network is transparent and all movements can be tracked, dedicated analytics’ platforms and traders often monitor their activities. Recent data points to these miners moving coins, possibly to exchanges for cash.
The spike from -0.85 to +3.25 coincides with the stalling of Bitcoin prices below ,500. This retracement follows a sharp expansion that saw the coin power above ,000 with increasing participation levels, as trading volumes show.
Analysts said the revival is because of shifting macroeconomic factors, especially in the United States, and recent data shows that inflation is falling and labor conditions are firming after the effects of COVID-19.