Connect with us

Blockchain

Bitcoin Miners Aren’t Responsible for Recent Price Dips, Data Shows

Republished by Plato

Published

on

“Miners are selling” is a popular trope used to explain bitcoin’s occasional downward price action. But on-chain data doesn’t support this narrative, according to analysts and mining pools themselves.

After bitcoin’s correction earlier this week to the tune of nearly 30%, miners were a popular scapegoat. But miners have been extremely consistent in their selling habits for months, according to network data collected by Glassnode and analyzed by CoinDesk.

For the past six months, weekly bitcoin flows from mining wallets to exchanges have been steady despite the cryptocurrency’s more than 330% gains over the same period. The only anomalous activity seen among mining wallets happened well before bitcoin’s correction. 

Since July 2020, miners have sent an average of 2,100 coins per week to exchanges, per CoinDesk Research. Miners are currently on track to finish another extremely average week with only 1,200 coins transferred so far from their wallets for cryptocurrency exchanges.

Total bitcoin transfers from mining wallets to exchange addresses.
Source: Glassnode, CoinDesk Research

Confirming this observation, Coin Metrics senior analyst Karim Helmy told CoinDesk there isn’t any on-chain data supporting increased miner selling.

“BTC-denominated gross inflows and outflows out of mining wallets have both remained stable, as have net flows,” Helmy said in a direct message.

The timing is off

An unusually large reduction in mining wallet supply, however, did occur over a recent four-day period from Dec. 26 to 30. During this period, the aggregate balance of mining wallets dropped by 21,000 BTC, a 1% decrease. 

But instead of possibly causing a correction, these transfers happened while bitcoin was climbing from $26,000 to $29,000. Over the next nine days, moreover, bitcoin’s price gained another 43% before temporarily topping out just below $42,000 and falling nearly 30% into Monday morning.

These coins don’t appear to have ever been sent to exchanges, per Glassnode data. Over the four-day period, exchange addresses received a total of less than 2,400 coins from mining wallets, an amount far less than the 21,000 withdrawn from mining wallets.

Total BTC balance of bitcoin miner addresses
Source: Glassnode, Coin Metrics, CoinDesk Research

Even if every coin sent by miners exchanges were instantly sold at market, however, their order would represent a tiny percentage of daily trading volume. 

Miners sent 1,890 BTC to exchanges on Dec. 26, 2020, worth roughly $48 million at the time and the largest single-day transfer in the past year. That same day, Binance – currently the largest cryptocurrency exchange by volume – reported over 148,000 BTC in volume on its BTC/USDT pair, the exchange’s largest bitcoin market. 

Assuming miners sold all their coins on one market at one exchange, they would represent 1.3% of its daily volume. 

Pools are stacking, not selling.

Leading mining pools are in fact increasing their bitcoin holdings, not liquidating them, with the balances belonging to miners at F2Pool and Lubian – the two largest mining pools by their individual holdings – steadily increasing for the past eight months, per Glassnode. 

“I’m not sure what addresses they’re watching,” said Poolin CEO Kevin Pan, calling anything showing a significant increase in miner selling “maybe fake data.” 

Read more: Bitcoin Plummets as Miners Sell Inventory, Spot Markets Panic

Even though Slush Pool doesn’t closely track what their miners do with their bitcoin payouts, engineer and technical writer Daniel Frumkin told CoinDesk, “We know that many of our miners are long BTC and only sell the portion of their revenue that’s needed to cover costs and manage risk.”

Thus, when the price drastically increases, Frumkin explains, miners are able to and in fact do sell fewer bitcoins, not more since the price appreciation boosts their profit margins per coin mined. 

So, who is selling?

More than likely, recent price dips are primarily caused by U.S. investors realizing some profits.

Read more: Guggenheim CIO Says Bitcoin ‘Should Be Worth’ $400,000

For example, Guggenheim CIO Scott Minerd took to Twitter Sunday saying it’s “time to take some money off the table,” referring to bitcoin, after telling CNBC a month ago that bitcoin “should be worth” $400,000. Significant selling activity on Coinbase over the weekend and Monday also signaled profit taking from U.S. investors. 

Regardless of what catalyzed it though, bitcoin’s latest correction wasn’t from miners selling their bitcoins. In fact, they’re accumulating more. 

Disclosure

Source: https://www.coindesk.com/bitcoin-miners-selling-myth-price-drop

Blockchain

Another One: Galaxy Digital and CI GAM to Launch a Bitcoin ETF in Canada Tomorrow

Republished by Plato

Published

on

Yet another Bitcoin ETF is to reach the markets in Canada as the country’s securities regulator has issued “a receipt for the final prospectus” for CI Global Asset Management’s application. Dubbed CI Galaxy Bitcoin ETF (BTCX), it’s expected to launch on the Toronto Stock Exchange (TSX) on March 9th, and Mike Novogratz’ Galaxy Digital Capital Management will act as the sub-advisor. 

  • Founded in 1965, CI Global Asset Management is an asset manager with over $180 billion in AUM as of January 2021. The firm announced the nod of approval received from Canada’s securities regulator necessary to launch its own Bitcoin ETF earlier today. 
  • The statement described BTCX as a tool that could “provide investors with a convenient way to gain exposure to bitcoin through an institutional-quality fund platform.” It will invest directly in the primary cryptocurrency with its holdings priced using the Bloomberg Galaxy Bitcoin Index. 
  • CI GAM will serve as the manager of the ETF, while Galaxy Digital Capital Management, whose founder and CEO is the long-time BTC proponent, Mike Novogratz, will act as “the bitcoin sub-advisor.” Meaning, that GDAM will execute the BTC trading on behalf of the ETF 
  • “We believe the emerging digital asset class presents compelling growth and diversification opportunities. The CI Galaxy Bitcoin ETF offers a simple and secure access point for traditional investors to gain exposure to bitcoin.” – commented Partner and Head of Asset Management at GDAM, Steve Kurz. 

  • Apart from BTCX, the two parties have also filed for launching the “first ETF in the world to invest directly in Ether” – CI Galaxy Ethereum ETF (ETHX). 
  • It’s worth noting that BTCX would not be Canada’s first Bitcoin ETF. CryptoPotato recently reported the first approval for the Purpose Bitcoin ETF, which enjoyed a highly-positive start, accumulating more than $400 million in a few weeks. 
SPECIAL OFFER (Sponsored)
Binance Futures 50 USDT FREE Voucher: Use this link to register & get 10% off fees and 50 USDT when trading 500 USDT (limited offer).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO35 code to get 35% free bonus on any deposit up to 1 BTC.

You Might Also Like:


Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://cryptopotato.com/another-one-galaxy-digital-and-ci-gam-to-launch-a-bitcoin-etf-in-canada-tomorrow/

Continue Reading

Blockchain

Ethereum, Monero, FTX Token Price Analysis: 08 March

Republished by Plato

Published

on

Ethereum recaptured a key resistance mark at $1,687, a level that had not been breached since the broader market pullback in late-February. Monero lacked the trading volumes and buying intensity to flip the 38.2% Fibonacci retracement level. Lastly, FTX Token eyed a rise above its overhead resistance but the indicators presented the chances of a short-term reversal.

Ethereum [ETH]

Source: ETH/USD, TradingView

Ethereum retook the $1,680 level from the bears thanks to a surge of 6% in the last 24 hours. Gains in the last eight days amounted to over 30% and underscored ETH’s bounce back from the $1,300 level. The On Balance Volume showed strong buying at two key support levels – one at the $1,300 mark and the other at $1,437 as the price headed northbound on the charts. However, the OBV made steady highs over the past few sessions and even dipped at the time of writing.

The RSI pointed lower from just below the overbought zone and showed weakening bullish strength in the market. This reinforced the idea that a hike in trading volumes could be needed before steering clear of the next test at $1,834.9 and especially if the uptrend were to sustain itself.  In the event of a pullback, the newly flipped resistance at $1,687.65 could act as a crucial line of support.

Monero [XMR]

Source: XMR/USD, TradingView

Low trading volumes and short-bodied candlesticks on Monero’s 4-hour chart showed a dearth of interest in the market but the bulls still held on to the 23.6% Fibonacci retracement level. A breakout above the 38.2% level could depend on stronger cues from the broader market, which would spur buying in the Monero market as well.

The ADX pointed lower and towards the 10-mark, showing a lack of a strong trend. The flow of capital towards the cryptocurrency created some optimism, but the price remained within its channel even as the CMF rose sharply above the half-way mark. The index reversed direction and pointed towards the half-line at the time of writing.

FTX Token [FTT]

Source: FTT/USD, TradingView

The Bollinger Bands on FTX Token expanded at press time and showed rising volatility as the price looked to flip $31.49 resistance. The presence of volatility allowed for large price swings and a break above the upper ceiling looked imminent over the coming sessions. Even though the Stochastic RSI traded in the overbought region, it pointed upwards after retesting the upper line and indicated a delayed stay in its current region.

However, there was also a possibility of a short-term pullback due to saturation in the market. A fall below the press time support level would highlight the next line of defense at $24.67.


Sign Up For Our Newsletter


Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://ambcrypto.com/ethereum-monero-ftx-token-price-analysis-08-march

Continue Reading

Blockchain

Norwegian energy firm Aker’s three-pronged approach to Bitcoin

Republished by Plato

Published

on

Energy company Aker ASA, which is based in Oslo, Norway has established a dedicated firm to invest in the Bitcoin ecosystem and related projects. Dubbed ‘Seetee AS,’ this new venture has a capitalization of $58 million and will invest Aker’s liquid assets in the digital currency. 

Øyvind Eriksen, President and CEO of Aker stated that Seetee’s launch will help the Aker Group gain industrial opportunities “that will be unlocked by Bitcoin and blockchain technology.” He further said in a statement: 

These technologies [such as Bitcoin and blockchain] have the potential to reduce frictions in our day-to-day lives, enhance the security of our digitally-driven economies, and unlock new business models for innovation. 

In a letter to investors, Chairman Kjell Inge Røk­ke revealed Seetee’s three-pronged approach to Bitcoin, which is al­ready run­ning “open-source Bit­coin pay­ment servers.” According to Røk­ke, the oil and gas firm will work alongside Canadian crypto-focused firm Blockstream and other partners.

Aker Group expects See­tee to set-up min­ing op­er­a­tions even though the local government no longer offers electricity subsidies to miners. However, the group’s  am­bi­tion is to be “a valu­able part­ner in new re­new­able projects:”

See­tee will es­tab­lish min­ing op­er­a­tions that trans­fer strand­ed or in­ter­mit­tent elec­tric­i­ty with­out sta­ble de­mand lo­cal­ly—wind, so­lar, hy­dro pow­er— to eco­nom­ic as­sets that can be used any­where. Bit­coin is, in our eyes, a load-bal­anc­ing eco­nom­ic bat­tery, and bat­ter­ies are es­sen­tial to the en­er­gy tran­si­tion re­quired to reach the tar­gets of the Paris Agreement. 

Finally, Aker is keen on mi­cro­pay­ments and how it could en­able the firm to avoid users’ per­son­al data be­ing mon­e­tized. Røk­ke further said: 

I’m fas­ci­nat­ed by the prospect of bitcoin Light­ning wal­lets that may en­able in­stant cred­it via mi­cro­pay­ments with­out the need to of­fer per­son­al in­for­ma­tion that my coun­ter­part can mon­e­tise with­out ap­proval or com­pen­sa­tion.

The Chairman also was bullish on Bitcoin and expects the asset to trade for “millions of dollars.” He believed that peo­ple who “know the most about Bit­coin” be­lieve its fu­ture suc­cess is “near­ly in­evitable.”


Sign Up For Our Newsletter


Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
The Easiest Way to Way To Trade Crypto.
Check out Nord
Make your Money Grow with Mintos
Source: https://ambcrypto.com/norwegian-energy-firm-akers-three-pronged-approach-to-bitcoin

Continue Reading
Blockchain3 days ago

How to Protect Yourself from the Cryptojacking Threat

Blockchain5 days ago

Will Netflix soon buy bitcoin?

Blockchain4 days ago

Experts divided on BTC predictions: Bullish or super bullish?

Blockchain4 days ago

BitGo To Introduce Crypto Custodial Services To New York Clients

Blockchain4 days ago

Bitcoin “Cheat Sheet” Calls For Next Leg Up To $77K

Blockchain3 days ago

Mark Cuban’s Dallas Mavericks to Accept Dogecoin Payments

Blockchain4 days ago

Ethereum gas fees drop as daily DEX and DeFi volumes decline

Blockchain5 days ago

3 key Ethereum price metrics show pro traders are aiming for $2K ETH

Blockchain4 days ago

XRP Price Analysis: 04 March

Blockchain4 days ago

Analyst tells Tesla to dump Bitcoin for buybacks as shares plunge alongside MSTR’s

Blockchain4 days ago

TA: Bitcoin Price Back Below 100 SMA, Why BTC Could Retest $45K

Blockchain3 days ago

Thailand’s largest movie theater chain accepts Bitcoin

Blockchain3 days ago

Decentralized Companies Are the New Norm and It’s the DAO Revolution That’s Making It Possible

Blockchain4 days ago

Bitcoin HODL Waves Suggest Bull Run Has Barely Started

Blockchain3 days ago

Binance Coin, Neo, Enjin Price Analysis: 05 March

Blockchain4 days ago

Co-founder of Floyd Mayweather-promoted ICO sentenced to 8 years

Blockchain4 days ago

Crypto fund KR1 makes investment in blockchain data protocol LazyLedger

Blockchain4 days ago

Blockchain Association meeting with key Biden staff about regulations

Blockchain4 days ago

Aave vs. Compound: Which DeFi Lending Platform is Better?

Blockchain3 days ago

Ripple’s Asia expansion unaffected by SEC lawsuit, says CEO

Trending