Bitcoin price has continued to surge this year and currently hovers around $23K. However, miners don’t seem to dump to take profits and they might be HODLing waiting for a push to the $24,200 level.
Mt Gox dumping 150,000 BTCs held
Interestingly not even the movement of 600 BTC for Mt. Gox to another wallet has pushed miners to start dumping. However, there is concern that Mt. Gox could be planning to distribute over 150,000 BTC held among its creditors. The exchange which was hacked had a deadline of December 15 for the rehabilitation processes implying that the Tokyo District which was appointed as the Trustee had a clear plan in place.
Although there was a drop in BTC in the past 24 hours the drop wasn’t attributed to dumping but rather to XRP that lost over 50% of its value and dragged the market along.
Cash App introduces BTC back reward program as crypto adoption grows
This year institutional interest in BTC has been high leading to a price surge but BTC miners’ outflow has declined over 68% since last month as miners choose to hold their BTC despite current high prices. Some of the companies interested in BTC and crypto include payment processing networks such as Visa. Recently Visa partnered with Coinbase to issue BTC debit Cards with Mastercard also following suit with an agreement with Wirex to issue BTC payment cards on MasterCard’s network.
Square’s Cash App is the latest to foray into crypto with the launch of a bitcoin back program that lets users earn back BTC after paying with their cash card. Cash App has been offering cashback on transactions made through its cash card via the Boost program.
Miners could be hodling BTC waiting for higher profits
According to data from Glassnode, there has been an increase in active supply since almost 97% of BTC wallets are profitable. Normally selling pressure could increase but it appears miners are not responding the same way and they could be holding for higher profits. They hodled through September and October this year anticipating profits in November but that was not the case with exchange reserves swelling. It could be that miners are waiting for the price to hit $24,200 but it important to note that following the tremendous surge this year BTC could be ready for a correction.
The allure of BTC could disappear, warns gold bull
Despite BTC adoption growing skeptics still think holding BTC is illogical and it can’t compare with Gold. One such skeptic is Dennis Gartman, University of Akron’s Endowment Investment Fund Chairperson who says he is still bullish on gold and doesn’t have interest in BTC. Gartman however acknowledges that bullion is facing competition from BTC considering it has outperformed gold this year but the digital assets could eventually disappear.
He argues that the infinite supply of BTC is pushing its price higher since there are several cryptocurrencies available. He says that the enthusiasm and fun surrounding BTC and cryptos will eventually disappear in two to four decades but gold will always be there.