Old Bitcoin Supply Flowing Into Binance: Is a Price Drop Coming?

Bullet Points:
– On-chain data shows a significant amount of old Bitcoin supply has flowed into Binance today, potentially bearish for the crypto’s price.
– The relevant indicator here is the “Spent Output Age Bands” (SOAB), which measures the total amount of Bitcoin that each age band in the market is moving currently.
– The 1m-3m and the 3m-6m age bands are the relevant cohorts for the current discussion, and their SOAB values have been quite high today.

Recently, on-chain data has revealed that a significant amount of old Bitcoin supply has flowed into Binance today, something that could potentially be bearish for the crypto’s price. The relevant indicator here is the “Spent Output Age Bands” (SOAB), which measures the total amount of Bitcoin that each age band in the market is moving currently.

The “age bands” here refer to coin groups divided based on the age of the coins belonging to them. For example, the 6m-12m age band includes the total number of coins that have been sitting dormant on the blockchain since at least 6 months and at most 12 months ago. The SOAB metric for this age band would then tell us how many of these coins from this age band are being transferred right now.

A modified version of this indicator is the “exchange inflow SOAB,” which only tracks transactions that are going toward exchanges. Investors usually deposit to these platforms for selling purposes, so large values of this metric can have a bearish impact on the price.

In the context of the current discussion, the 1m-3m and the 3m-6m age bands are the relevant cohorts. An analyst from CryptoQuant recently pointed out that this aged supply is likely to be in profits and hence the deposits could have been done to sell it.

A chart of the trend in the SOAB data for these two age bands over the past day shows that the value of the metric seems to have been quite high today. This suggests that a significant amount of old Bitcoin supply has been deposited to Binance today, which could potentially impact the crypto’s price negatively.

It is important to note that this analysis is based on on-chain data, which is not always a reliable indicator of market movements. Therefore, investors should also consider other factors before making any decisions.

Crypto Execs in Australia Warn Government Against Classifying Digital Assets as Financial Products

• Crypto executives have issued warnings in response to Stephen Jones’ comments about the country’s regulatory framework on digital assets.
• Jones proposed token mapping as a part of an effort to bring in legislation to regulate the digital asset sector.
• He also mentioned that the government is not keen on structuring an entirely new set of rules for crypto, which fundamentally shares the same characteristics as a financial product.

The crypto industry in Australia is up in arms following a comment made by Stephen Jones, Assistant Treasurer and Minister of Financial Services, in an interview with the Sydney Morning Herald on January 22. Jones proposed token mapping as a part of an effort to bring in legislation to regulate the digital asset sector later in 2023. This has caused a flurry of disquiet among crypto executives in the country, who are wary of the government’s stance on classifying all cryptocurrencies as financial products under the law.

One crypto executive admitted that token mapping would be necessary as part of the government’s efforts to regulate the digital asset sector. This would be followed by a consultation process within the industry. However, Jones mentioned that the government is not keen on structuring an entirely new set of rules for crypto, which fundamentally shares the same characteristics as a financial product. He said: “I don’t want to pre-judge the outcomes of the consultation process we are about to embark on. But I start from the position that if it looks like a duck, walks like a duck, and sounds like a duck, then it should be treated like one.”

The minister further added that “Other coins or other tokens are essentially used as a store of value for investment and speculation. There is a good argument that they should be treated like a financial product.” While this may be true, the crypto executives are concerned that such a move would stifle innovation in the industry. It could also hinder the growth of cryptocurrency businesses in Australia, as they would be subject to the same stringent regulations as traditional financial products.

The debate surrounding the classification of cryptocurrencies as financial products is ongoing and the crypto industry is keen to see how the government will move forward with its plans. It remains to be seen whether the government will go ahead with its proposal of classifying digital assets as financial products, or if it will come up with an entirely new set of rules for the crypto sector. Nevertheless, it is clear that the crypto executives in Australia are not happy with the potential implications of such a move and are hoping that the government reconsiders its stance.

Whales Accumulate 37,100 BTC: Bitcoin Rally Not Over Yet?

• On-chain data shows that large Bitcoin whales have been accumulating in the last 10 days as BTC has rallied strong.
• A relevant indicator here is the “BTC Supply Distribution” which tells us which wallet groups on the network are holding what percentage of the total supply.
• The total percentage of the Bitcoin supply held by the 10-100 coins band has been rising for the past 10 weeks or so.

In the past 10 days, large Bitcoin whales have been accumulating as Bitcoin (BTC) has rallied strongly. On-chain analytics firm Santiment has been tracking the activity of whales and other large holders through its “BTC Supply Distribution” metric. This metric tells us which wallet groups on the network are holding what percentage of the total supply.

The wallet groups here refer to ranges that denote the upper and lower bound for the number of coins that each wallet in a given group is currently holding. For instance, the 1-10 coins band includes all wallets that are carrying at least one Bitcoin and at most ten Bitcoin right now. The Supply Distribution metric for this group would then show the share of the total Bitcoin supply that the combined balances of all the wallets falling into this range currently occupy.

In the context of the current topic, there are three wallet groups of interest: 10-100 coins, 100-1,000 coins, and 1,000 to 10,000 coins. As displayed in the graph from Santiment, the total percentage of the Bitcoin supply held by the 10-100 coins band has been rising for the past 10 weeks or so. Holders with balances in this range are usually called “sharks.”

Over this period, the value of the Supply Distribution metric for this band has risen from around 6.45% to 7.55%. This indicates that wallets with balances between 10 and 100 Bitcoin have added a total of 37,100 BTC to their holdings in the past 10 days. This is a significant amount of Bitcoin, and it suggests that large holders have been accumulating during the recent rally.

This accumulation of Bitcoin by whales is a positive sign for the market. It indicates that large investors are confident in the long-term prospects of the cryptocurrency and are taking advantage of the current market conditions to add to their holdings. The recent accumulation of Bitcoin by whales could also indicate that the current rally is far from over and that more upside could be in store for the cryptocurrency in the near future.

Virunga National Park Pioneers Bitcoin Mining to Save Endangered Gorillas

• Virunga National Park is the first national park in the world to use Bitcoin mining to support the park and its endangered mountain gorillas.
• The Bitcoin mine is powered by a hydroelectric plant on the same mountain, and is housed in 10 shipping containers in the middle of the jungle.
• The park has been hard-pressed in recent years due to lack of tourist revenue, disease outbreaks, lockdowns, and kidnappings, and Bitcoin mining was seen as a viable solution to their economic problems.

Virunga National Park, located in the Congo Basin, is the first national park in the world to recognize the potential of Bitcoin mining in order to support the park and its endangered mountain gorillas. With the park facing economic hardship due to lack of tourist revenue, disease outbreaks, lockdowns, and kidnappings, the decision was made to bet big on Bitcoin.

The Bitcoin mine is powered by a hydroelectric plant on the same mountain and is housed in 10 shipping containers in the middle of the jungle. The mine is comprised of thousands of powerful computers that are able to generate enough energy to power the park and its surrounding community. The mine provides a sustainable source of income for the park, as well as a way to help fund conservation efforts and community development projects.

The park’s director, Emmanuel de Merode, has been vocal about the potential for Bitcoin to drive sustainable development in Virunga. He believes that the mine can help to combat the deforestation that is ravaging the region, as well as provide jobs and education opportunities to the local community. De Merode has also championed the use of green energy to power the mine and ensure that it is as environmentally friendly as possible.

The success of the Bitcoin mine at Virunga is being closely watched by other conservationists around the world, who see it as a potential model for other parks to follow. The hope is that other parks will be able to use Bitcoin mining to drive sustainable development and help to protect the environment. In the meantime, the success of Virunga’s Bitcoin mine serves as an inspiring example of how cryptocurrency can be used in a positive way to benefit nature and local communities.