Grayscale’s Bitcoin Trust (GBTC) has witnessed a significant reduction in assets under management, with the trust’s holdings now falling below the 300,000 BTC mark, a key milestone. Additionally, the latest report on digital asset fund flows from Coinshares shows that bitcoin and ether exchange-traded products (ETPs) have seen withdrawals for three consecutive weeks. Heavy Withdrawals […]
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Swiss National Bank Chief Raises Concerns About Adding Bitcoin to Currency Reserves
The chairman of the Swiss National Bank has expressed reservations about incorporating bitcoin into the central bank’s currency reserves. He stated that no decision has been made yet to invest in bitcoin, underscoring the necessity for currency reserves to be liquid, sustainable, and easily tradable, given their use in international payments. Swiss National Bank on […]
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Nigerian Central Bank Governor Denies Using Forex Reserves to Defend Local Currency
The Nigerian central bank governor has refuted claims that the bank is using the country’s foreign exchange reserves to shore up the naira. The governor attributes the decline in reserves to debt repayments and other payments, which are made because they help to maintain Nigeria’s credibility. Maintaining Nigeria’s Credibility Yemi Cardoso, governor of the Central […]
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Binance Shifts $1 Billion in SAFU Bitcoin Reserves to USDC
Binance, the leading cryptocurrency exchange globally in terms of trading volume, has shifted its SAFU (Secure Asset Fund for Users) reserves into the stablecoin USDC to bolster “its reliability.” During the early hours of Thursday, the platform transferred two substantial amounts of BTC and BNB. Binance Executes Dual Crypto Moves on Thursday: What’s Behind the […]
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Report: Bitcoin Miners Strengthen Reserves Ahead of Fourth Halving
As we near the anticipated fourth Bitcoin halving event, there are only 1,133 blocks left until we reach block 840,000, with the milestone expected to occur in about a week. Recent data from theminermag.com’s Miner Weekly on Thursday shows that bitcoin miners are conserving their reserves as the event draws close. With Halving on Horizon, […]
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Federal Reserve’s Neel Kashkari on Bitcoin: Still No Legitimate Use Case in an Advanced Democracy
The president and CEO of the Federal Reserve Bank of Minneapolis, Neel Kashkari, has expressed concern about consumer risk due to “fraud, hype, and confusion” surrounding bitcoin. Moreover, he said the cryptocurrency has been around for more than a decade but “there’s still no legitimate use case in an advanced democracy.” ‘I Am Worried From […]
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Bitcoin Falls to Sub-$63K as Market Awaits Federal Reserve’s Next Move
On Tuesday, the value of bitcoin fell to a low of ,355, experiencing a decline of over 7% against the U.S. dollar in the last 24 hours and a decrease of 12.4% in the past week. This downturn led to the liquidation of a substantial number of bitcoin long positions, with more than 0 million […]
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Amidst a Surge in Spot Bitcoin ETF Reserves, Kraken Institutional Enters the Market
The crypto exchange based in San Francisco, Kraken, has unveiled its latest offering, Kraken Institutional, a digital currency suite designed expressly for high-net-worth firms and institutional investors. Deep Liquidity and Low-Latency Trading: Kraken Institutional’s Promise to Elite Clients This new crypto service, Kraken Institutional, introduced by Tim Ogilvie, the global head of the business division, […]
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Bitcoin ETF Reserves Rise: Over 200,000 BTC Worth $9.56 Billion Gathered Since January Debut
At 10:00 a.m. EDT on Feb. 9, 2024, the nine recently launched spot bitcoin exchange-traded funds (ETFs) collectively possess 202,868.61 bitcoin, valued at .56 billion according to current exchange rates. New ETFs Command Over 200,000 Bitcoin In the last 28 days, spot bitcoin ETFs introduced by Blackrock, Fidelity, Ark Invest, Bitwise, Invesco, Vaneck, Valkyrie, Franklin […]
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Bitcoin Miner Reserves Drop To June 2021 Levels, What This Means For Price
Bitcoin miner reserves can often be a tell for where the market could be headed next due to their large holdings. These reserves going up or down can pinpoint how miners are looking at the market, and a drop in their reserves can be bad for the BTC price.
Miners Reserves Drop By 14,000 BTC
Bitcoin miners, who are responsible for confirming transactions on the blockchain and keeping the network safe, seem to be turning toward selling rather than accumulating. According to a CryptoQuant report, these miner reserves have seen a notable drop since 2024 began.
Their holdings dropped by 14,000 BTC in less than two months, suggesting that these miners have been selling some of their stash. Going by an average price of ,000 since January 2024, this means that Bitcoin miners have sold over 0 million worth of BTC so far. As a result of this, miner reserves are currently sitting at 1.8 million BTC, which is the lowest level since June 2021.
Bitcoin miners selling their coins are not new because they often need to sometimes sell to keep their operations running. The most notable costs include electricity, as well as mining machines. However, it does not change the fact that their selling can have an adverse effect on the price of BTC.
This time around, though, miners seem to be selling for an additional reason, which Matthew Sigel, who’s head of digital asset research at VanEck, has identified to be for purposes of bolstering their balance sheets.
Bitcoin Miners Getting Ready For The Halving
The next Bitcoin halving is expected to happen sometime in April 2024, and the block rewards are expected to fall to 3.125 BTC. Naturally, these miners are getting ready for this drop in rewards, as identified by Matthew Sigel.
“Miners have begun to sell more of their coins to bolster balance sheets and fund growth capex ahead of tougher times for margins when block rewards are halved in April. After the halving, scale will matter even more.”
Nevertheless, as selling has ramped up, so has buying as Spot Bitcoin ETF issuers scramble to accumulate BTC for their customers. According to this NewsbTC report, Spot Bitcoin ETF issuers now hold more than 657,000 BTC, worth more than billion at current prices.
At the time of writing, the BTC price is trending at ,933, after being beaten back from the ,000 resistance. The crypto’s fluctuations at this level suggest that ,000 is the target to beat if it is to continue its uptrend.