Key Points
- Major US banks have been approaching Hut 8, a leading Bitcoin mining company, to purchase Bitcoin directly.
- The high demand for Bitcoin is due to supply shortages on various exchanges, which could potentially drive up Bitcoin prices.
Asher Genoot, the CEO of Hut 8, a leading publicly traded Bitcoin mining company based in the US, disclosed that numerous major banks have expressed interest in buying Bitcoin directly from the miner.
In an interview with DL News, Genoot revealed that his company has been approached by several big banks. This move by the banks to reach out to Hut 8 is a result of Bitcoin supply shortages observed on various exchanges.
US Banks’ Growing Demand for Bitcoin
Hut 8, being one of the key Bitcoin miners in the industry, is a natural choice for these banks. Genoot mentioned in the interview that the banks have reached out to them due to the supply shortages on different exchanges.
This move has placed a strain on the availability of Bitcoin within traditional trading platforms in the crypto community.
While Genoot did not disclose the specific banks involved, he hinted that they are among the largest institutions in the financial sector.
Considering Hut 8’s significant holdings in the cryptocurrency space, it’s no surprise that major financial institutions are seeking direct access to Bitcoin from them. The company’s Bitcoin holdings are surpassed only by industry giants like software developer MicroStrategy Incorporated, rival mining company Marathon Digital, and electric car manufacturer Tesla Inc.
Impact on Bitcoin Price
Industry observers have linked this accumulation spree to the significant influx of funds into the cryptocurrency market.
Since the approval of a spot Bitcoin ETF in January, investors have accumulated over 211,000 Bitcoin, which is approximately $12 billion. This increased demand underscores Bitcoin’s growing appeal as a desirable asset class among institutional investors.
As the Bitcoin halving event approaches later this April, analysts expect a further reduction in supply. Block rewards are anticipated to decrease from 6.25 BTC to 3.125 BTC. This will effectively reduce the daily Bitcoin emissions rate from 900 BTC to 450 BTC.
This 50% drop will likely intensify the Bitcoin supply crunch and could potentially drive up prices to new highs soon.
As supply dwindles and institutional interest increases, stakeholders and investors will assess their positions in the coming days. This reducing supply is one of the key catalysts highlighted by market veterans like Cathie Wood who believe the price of the coin can jump as high as $1.5 million in the near future.
At present, the price of Bitcoin is around $67,375.35, up by 2.24% in the past 24 hours according to data from CoinMarketCap.
