• News
    • Bitcoin
    • Altcoins
  • NFT
  • Metaverse
  • Analysis
  • Regulation
  • Learn
  • Market Cap
What's Hot

FTX Founder Sam Bankman-Fried Pleads Not Guilty to New Charges, Including Bribery of Chinese Officials: Report

2023-03-31

XRP Perpetual Futures Open Interest skyrockets to $610 million

2023-03-31

CNBC’s Jim Cramer calls Binance “way too sketchy”

2023-03-31
Facebook Twitter Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
Facebook TikTok Instagram YouTube
CryptoNewsMetaverse
  • News
    • Bitcoin
    • Altcoins
  • NFT

    U.S. IRS Considers Taxing NFTs Like Other Collectibles

    2023-03-21

    Meta Shuts Down NFT Project to Focus on FinTech and Content

    2023-03-14

    Solana’s Solend V2 Release, Is SOL Price $50 Next?

    2023-03-06

    Amazon NFT Marketplace To Reportedly Launch Next Month

    2023-03-06

    Blur Coin Under Fire As Allegations Of Wash Trading Emerge

    2023-03-01
  • Metaverse

    Siemens and MIT Tech Review Probe ‘The Emergent Industrial Metaverse’

    2023-03-30

    Disney Metaverse Division Reportedly Scrapped

    2023-03-28

    Animoca Denies $200M Metaverse Fund Cut

    2023-03-27

    Metaverse Trading Hits All-Time High

    2023-03-24

    Exploring the Metaverse: A Guide to Investing in Metaverse Stocks

    2023-03-20
  • Analysis

    DOJ Officially Seizes Over $456,000,000 Worth of Robinhood Shares Tied to FTX Founder Sam Bankman-Fried

    2023-01-08

    Mark Cuban Makes Prediction on Next Crypto ‘Scandal,’ Warns of Potential Implosion if Exposed: Report

    2023-01-08

    Binance Listings Cause Crypto Assets To Spike an Average of 41%: New Research

    2023-01-08

    Bitcoin Whales Unloaded BTC As Market Reversed and Parked Their Profits in This Crypto Asset Class: Santiment

    2023-01-07

    Crypto Analyst Predicts Breakout for AI-Focused Altcoin, Updates Outlook on Ethereum and Lido DAO

    2023-01-07
  • Regulation

    FTX Founder Sam Bankman-Fried Pleads Not Guilty to New Charges, Including Bribery of Chinese Officials: Report

    2023-03-31

    XRP Perpetual Futures Open Interest skyrockets to $610 million

    2023-03-31

    CNBC’s Jim Cramer calls Binance “way too sketchy”

    2023-03-31

    Bitcoin reclaims $28k despite potential regulatory woes from Binance lawsuit

    2023-03-31

    Binance daily withdrawals double as users report problems off-ramping

    2023-03-31
  • Learn

    Best Bitcoin Mining Software — TOP Crypto Miners to Use in 2023

    2023-03-30

    Next Cryptocurrency to Explode 2023

    2023-03-30

    Chart Patterns Cheat Sheet For Technical Analysis

    2023-03-21

    Best NFT Wallets in 2023

    2023-03-21

    What are Dapps (Decentralized Applications) Crypto?

    2023-03-17
  • Market Cap
CryptoNewsMetaverse
Home»Bitcoin»Are Big Players No Longer Interested In Bitcoin?
Bitcoin

Are Big Players No Longer Interested In Bitcoin?

2023-01-23No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

Bitcoin prices are trending higher, but big players appear hesitant to buy into the current rally.

Bitcoin Reserves Dropping

On-chain data shows that exchange, digital asset banks, and miner BTC reserves are relatively lower. Over the past weeks, the spot price of BTC has soared over 40%, bottoming at around $15,300 registered in Q4 2022. Bitcoin has now risen to retest $23,300, reaching a new Q1 2023 high.

Bitcoin Price on January 23
Bitcoin Price on January 23| Source: BTCUSD on BitStamp, Trading View

As history shows, the spike in Bitcoin prices should be at the back of solid support, mainly from heavyweights, including miners and digital asset banks. 

Bitcoin miners tend to have big reserves of BTC at any point in time since they need to liquidate from time to time, meeting operation costs. In recent months, following the drop in Bitcoin prices coupled with a high hash rate potentially making mining success harder, their reserves have declined. 

Looking at Bitcoin Miners’ and Digital Asset Banks’ Reserves

According to streams, BTC reserves fell from 1.847 million on January 12 to 1.836 million on January 2023. During this time, the price of Bitcoin has been on a bullish run, questioning whether the pump is on an empty tank.

It should be noted that miners tend to offload their coins when unsure of the price trajectory in weeks and months ahead.

Their selling deluge punctures the upside momentum and might even push the coin lower. However, when miners are confident about what lies ahead, they accumulate, expecting the shift in trend to result in tidy profits on their end. Therefore, the current divergence between miner reserves and prices could be a bearish signal.

Besides miners, digital asset bank reserves are declining. Digital asset bank reserves refer to BTC held by these regulated institutions. Over the past few months, following the collapse of FTX, Alameda Research, and the effects it had on other players, including DCG and Genesis Global, their activity has been near non-existent. 

The contraction means institutions are playing safe and may not be willing to accumulate and store their coins in these ramps. During the last bull cycle, from 2020 to 2021, there was noticeable activity amongst digital asset banks, pointing to possible interest from institutions.

Although traders and optimists might interpret the recent bounce in crypto prices as a net positive for BTC, the absence of leads, judging from institutional activity, may question whether the current rally would last longer.

There might be a regulatory angle affecting digital asset banks’ involvement. Government agencies are asking whether crypto venture capitals and service providers did adequate due diligence before exposure to crypto in the last bull cycle.

At the same time, some digital asset banks are reducing their crypto exposure, affecting activity.

Feature Image by Dado Ruvic/Reuters, Chart by Trading View

Source link

Big Bitcoin interested longer players
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Bitcoin reclaims $28k despite potential regulatory woes from Binance lawsuit

2023-03-31

Best Bitcoin Mining Software — TOP Crypto Miners to Use in 2023

2023-03-30

Texas bill seeks to eliminate incentives for Bitcoin miners

2023-03-30

CFTC Says Bitcoin, Ethereum and Litecoin Are Commodities in Lawsuit Against Binance and CEO Changpeng Zhao

2023-03-29
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Macro Guru Raoul Pal Says Bitcoin (BTC), Crypto and Stocks Are Ready To Go Exponential – Here’s Why

2022-12-06

Assessing the odds of Ethereum crossing $2k mark this week

2022-09-13

Here’s the full story behind Ethereum’s [ETH] recent performances

2022-06-19

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, NFT, Metaverse and more.

We're social. Connect with us:

Facebook Instagram YouTube TikTok
Top Insights

FTX Founder Sam Bankman-Fried Pleads Not Guilty to New Charges, Including Bribery of Chinese Officials: Report

2023-03-31

XRP Perpetual Futures Open Interest skyrockets to $610 million

2023-03-31

CNBC’s Jim Cramer calls Binance “way too sketchy”

2023-03-31
Get Informed

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
© 2023 Cryptonewsmetaverse.com. Designed by ProdigitalX.

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$28,588.001.87%
  • ethereumEthereum(ETH)$1,829.652.07%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.000.01%
  • binancecoinBNB(BNB)$317.750.29%
  • usd-coinUSD Coin(USDC)$1.000.24%
  • rippleXRP(XRP)$0.540.31%
  • cardanoCardano(ADA)$0.4026086.52%
  • Lido Staked EtherLido Staked Ether(STETH)$1,826.192.16%
  • dogecoinDogecoin(DOGE)$0.0768753.16%