US SEC Maintains Strict Crypto Custody Rules for Banks

US SEC Holds Firm on Crypto Custody Rule

The United States Securities and Exchange Commission (SEC) remains firm on its stance regarding crypto custody for regulated financial institutions, as SEC Chief Accountant Paul Munter confirmed during a recent speech. His remarks focused on Staff Accounting Bulletin No. 121 (SAB 121), a rule introduced in March 2022 that has sparked significant debate.

Munter’s statement emphasized that entities holding crypto assets for others must record a liability on their balance sheets. This position, central to SAB 121, has been a point of contention, as it effectively prevents many regulated financial firms from offering crypto custody services.

The SEC official argued that entities safeguarding digital assets bear responsibility for potential risks, and this should be reflected in their financial statements. By requiring these companies to record liabilities, the regulators seek to ensure that institutions are adequately prepared for the risks associated with crypto custody.

A Pushback and the Regulator’s Insistence

This stance has faced pushback from various quarters, including SEC Commissioner Hester Peirce. Peirce expressed concerns about the content and the process behind SAB 121. Nate Geraci, President of the ETF Store, also weighed in, adding that the SEC seems “dug in” on SAB 121.

He added that the agency is unwilling to allow regulated financial institutions the flexibility to provide crypto custody services. His remarks reflect the sentiment among some industry participants who believe the regulator’s position is too restrictive.

Although the SEC has faced challenges to its guidance, including a vote by the US House of Representatives to overturn the rule in May, the agency’s position remains unchanged. Moreover, President Joe Biden vetoed the repeal in June, ensuring SAB 121 continues to govern crypto custody regulations for now.

Notably, the SEC has acknowledged that not all crypto custody arrangements fit neatly into SAB 121’s framework. Munter pointed out that bank holding companies offering bankruptcy protection for crypto assets do not need to record a liability.

Similarly, broker-dealers facilitating cryptocurrency transactions without holding cryptographic keys could be exempt from the requirement. Despite the pushback and efforts to change the rule, SAB 121 remains a critical element of the regulatory agency’s approach to regulating cryptocurrency custody for banks and other financial institutions.

US SEC Crypto Enforcement Soars to $4.7 Billion in 2024

Meanwhile, the SEC has significantly ramped up its crypto enforcement actions in 2024, hitting nearly $4.7 billion in penalties. This marks an increase of over 3,000% compared to 2023.

The most substantial contribution to the SEC’s funds came from a record-breaking $4.47 billion paid by Terraform Labs and Do Kwon, its ex-CEO, in June. The settlement reflects a growing focus on tackling larger and more influential crypto cases.

In total, the regulators initiated 11 enforcement actions in 2024, representing a 3,018% increase in penalties despite handling fewer cases compared to the previous year. In 2023, the regulators took 30 actions but only imposed $150.3 million in fines.

SEC Shifts Focus to Larger, High-Impact Cases

Moreover, a report from Social Capital Markets highlighted the shift in the SEC’s strategy toward pursuing high-impact enforcement. Rather than spreading resources across many smaller cases, the regulator is now focusing on fewer cases but imposing larger financial penalties on those found guilty.

The rise in penalties is not without precedent. In 2019, the SEC fined Telegram $1.24 billion, which included $18.5 million in civil penalties and $1.2 billion returned to investors. This action helped push the average fine for that year to over $70 million, a substantial increase compared to earlier years.

While 2024’s fines have reached unprecedented levels, not all cases involve massive sums. Since 2020, 46% of the US regulator’s fines were below $1 million, and 30% were between $1 million and $10 million.

However, the Terraform Labs settlement has inflated the overall average fine, bringing the average enforcement action in 2024 to over $420 million. Other notable financial penalties over the past few years include actions against Ripple Labs, GTV Media Group, and con artists Tina and John Barksdale.

These cases, which exceeded $100 million in penalties, have also contributed to the regulator’s increasingly aggressive stance on cryptocurrency regulation. As the SEC pushes forward with its cryptocurrency enforcement efforts, companies in the sector are likely to face increasing pressure to comply with its rules.

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Spanish Bank BBVA Unveils USDC Stablecoin Integration: What to Know

BBVA, one of Spain’s leading banking institutions, has announced the integration of USDC stablecoin into its banking services. The move is part of the bank’s expansion into the crypto space to offer institutional clients specialized trading operations. In addition, BBVA’s integration of USDC signals its expansion into the Switzerland digital asset market.

Expanding Digital Asset Offering with USDC Stablecoin Integration

To meet the growing demand for digital assets among its customers, BBVA introduced Bitcoin (BTC) and Ethereum (ETH) in 2021, its first entry into the cryptocurrency market. The launch of USD Coin (USDC), a stablecoin backed by the US dollar, is one more way the bank is bolstering its regional presence.

In line with the bank’s official announcement, prominent clients using its NewGen account and institutional clients in Switzerland will now have access to USDC on the same platform that they use for traditional investments. With this integration, BBVA has launched its third major digital asset initiative.

Thus, its customers can trade, store, or instantly convert USDC into euros, dollars, or other supported currencies. BBVA’s decision to broaden its cryptocurrency services reflects the changing needs of its clientele, especially a desire for more exposure to digital assets.

Enhancing Asset Security with Metaco Collaboration

Furthermore, leading blockchain infrastructure providers Metaco and BBVA have partnered to manage and protect BBVA’s clients’ digital assets. This alliance demonstrates BBVA’s dedication to satisfying institutional investors’ increasing demand for digital assets while maintaining the security and dependability of its cryptocurrency offerings.

BBVA provides corporate investors, fund managers, private banking clients, and large corporations with simplified access to cryptocurrency markets through the Harmonize platform. Following this integration, it is now simpler for individuals and businesses to confidently manage their cryptocurrency portfolios.

Furthermore, BBVA revealed that the USDC integration enables faster trading operations for customers as it facilitates effective value transfers via blockchain technology. The bank’s safe vault system, which guarantees that customers’ stablecoins are safeguarded to the highest standard, adds more credibility to its cryptocurrency services.

Expanding Crypto Services to International Markets

BBVA does not just offer cryptocurrency services in Switzerland; the bank has also expanded its USDC offerings to Turkish clients through Garanti BBVA Digital Assets. By using the bank’s cryptocurrency trading platform, its Turkish customers can trade Bitcoin, Ether, and AVAX in addition to having the option to custody Chiliz funds.

By implementing these programs, BBVA is meeting the demands of an expanding clientele that is curious about the possibilities presented by cryptocurrencies. Customers are also given access to opportunities that are frequently not available on traditional financial platforms by the bank through its cryptocurrency services.

Ripple’s Stablecoin Plans

Meanwhile, the popular blockchain firm Ripple is gaining attention because its stablecoin, RippleUSD (RLUSD), is presently in the private beta stage. Brad Garlinghouse, the CEO of Ripple Labs, recently declared that the stablecoin will probably be issued in a few weeks rather than months.

However, the Chief Technology Officer (CTO) of Ripple, David Schwartz, hinted that the RippleUSD will likely be accessible by institutions at launch to avoid its use for illegal purposes such as money laundering. In the official statement indicating its plans for a stablecoin, Ripple stated that US dollar deposits, short-term US government Treasuries, and other cash equivalents would provide complete backing for RippleUSD.

Like other prominent stablecoins like USDC and USDT, Ripple is focused on making sure that its stablecoin runs within a safe and regulated framework. Hence, Ripple is providing a solution that satisfies institutional clients’ needs while addressing more general regulatory concerns as it continues to improve its offering.

Moreover, the launch of RippleUSD coincides with an increase in the demand for stablecoins, especially from companies looking for more reliable financial instruments in the crypto market. While Ripple Labs hasn’t revealed any specific launch date for the RLUSD, many market players are making predictions about the stablecoin’s performance in the larger crypto ecosystem.

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How to Stay Safe Using Bitcoin ATMs: A Guide

By accepting cash or debit cards, Bitcoin ATMs provide a basic approach to buying and exchanging BTC. They save time by giving fast access to cryptocurrencies without depending on a bank account.

However, not all of these machines are safe; consequently, using one without enough knowledge can cause financial loss or even a legal dispute. This guide will look at how to be safe when using BTC ATMs, particularly how to recognize authentic machines, stop fraud, and guarantee secure transactions.

What are Bitcoin ATMs?

Bitcoin ATMs will produce BTC in your digital wallet based on the amount of cash you inserted or the fiat in the debit card you inserted. Using these ATMs is straightforward:

• Scan the QR code of your wallet.

• Enter the BTC purchase amount.

• Verify the transaction.

Although the process is short, it’s crucial to be aware of the hazards involved in these transactions.

Legal versus Illegal Bitcoin ATMs

A legal Bitcoin ATM follows municipal rules and banking guidelines. BTC ATM operators could ask you to scan a government-issued ID or input your phone number to prove your identity.

Conversely, illegal Bitcoin ATMs are often used for money laundering or other illicit activity. Hence, they allow anonymous transactions and don’t require any KYC process. Using such machines can expose you to legal repercussions, fraud, and scams.

How to Identify Legal Bitcoin ATMs

The following tips will help you to identify legal machines:

Search for Licensing

Local financial authorities often register legal Bitcoin ATMs. Many websites, such as CoinATMRadar, offer lists of licensed machines based on location. It is safer to avoid using one if you cannot obtain information regarding its operator or licensing information.

KYC Procedures

A legitimate Bitcoin ATM will want some identity confirmation before letting you perform a transaction. If a machine allows you to make transactions anonymously, it could be running illegally.

Look for Certified Operators

Like Bitcoin Depot and CoinFlip, major ATM operators follow the rules and maintain their machines appropriately. A machine that seems badly maintained raises a red flag.

Fair Prices

Usually, legal Bitcoin ATMs impose transaction fees ranging from 4% to 12%. A machine may be operating illegally if it charges outrageous fees or if the sum seems abnormally high.

Avoiding Bitcoin ATM Scams

When making cryptocurrency transactions with BTC ATMs, here are some typical frauds and tips for avoiding them.

Fake Customer Support Calls

Scammers could contact you, pretending to be agents from reputable businesses like Microsoft or your bank, and say your account is compromised. To “secure” your money, they can tell you to take it out and put it into a Bitcoin ATM. Always confirm the validity of such calls and never follow uninvited directions to fund a machine.

QR Code Scams

Scammers could send you a QR code to scan at these ATMs, which will divert your money to their wallet rather than yours. So, verify the wallet address first and always validate any transaction using QR codes from reliable sources.

High Pressures

Be careful if someone pushes you to act fast—especially if they say you have to use a Bitcoin ATM to fix a problem. Scammers often use urgency to skew your judgment.

Suspicious Locations

Avoid using machines in far-off or unmonitored locations, such as poorly lit establishments or back lanes. Stick to those in well-known sites, such as respectable companies or retail centers.

Protecting Your Personal Information

Using Bitcoin ATMs calls for careful protection of your personal information. Here’s how to protect your personal information.

Legal ATMs require KYC verification, which might involve inputting your phone number or scanning your ID. Avoid the machine if it asks for important information, like your social security number.

Furthermore, steer clear of connecting your smartphone to public Wi-Fi networks when using these ATMs, as they’re usually not secure. An ideal option to protect your sensitive data is to use a private, safe network.

Moreover, some con artists set skimming devices on Bitcoin ATMs to steal personal data. Therefore, always check the machine for any odd accessories before starting the crypto purchase process on any ATM.

Staying Safe During Transactions

When using licensed Bitcoin ATMs for transactions, use these tips to be safe.

• Take your time. Verify the wallet address and transaction amount twice before approving any activity.

• Always have the receipt from your transaction handy. If your transaction goes wrong, you will need it as documentation.

• Turning on two-factor authentication (2FA) and choosing a strong password will help you to guarantee your digital wallet. This helps stop illegal access to your cryptocurrency.

What to Do Should You Come Across an Illegal Bitcoin ATM

Should you stumble across a dubious machine, you should let the authorities know. Most countries provide websites or hotlines allowing you to document illicit financial activity. Record the location, operator information, and any alarming behavior you noticed.

Reporting illicit Bitcoin ATMs helps to make the crypto market safer for everyone by enabling authorities to target illegal businesses.

Final Thoughts

Following the safety advice in this guide can help guard your money and personal data and prevent legal problems or fraud victimization when using Bitcoin ATMs. Hence, you can be sure there won’t be issues before, during, or after you’ve completed your BTC purchase or sale.

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Avoiding Crypto Job Scams on TikTok: Essential Tips

Since social media channels like TikTok have grown in popularity, employment seekers are more susceptible than ever to fraud, particularly those about cryptocurrencies. Often resulting in financial loss or stolen personal data, these scammers present attractive crypto job offers,

It’s crucial to understand how these job frauds work and how to guard yourself from becoming caught in their nets. This guide explains how crypto job scams operate on TikTok, provides red signals to look for, and offers doable advice for staying secure when looking for a job.

How TikTok Crypto Job Scams Work

Using a range of strategies, TikTok scammers target naive job seekers. Many times, these frauds feature bogus openings that seem real and promise remote employment together with cryptocurrency income potential.

Those looking for short, flexible work may find the offer especially enticing since such job offers often state that experience is not required. Once you interact with these offers, the scammer’s actual motivations are abundantly evident.

Usually, con artists will ask for personal information like your social security number or bank data or demand upfront fees for “account verification,” or “access to tasks.” For basic chores like clicking internet advertising or viewing videos, companies claim to pay you in cryptocurrency—such as Bitcoin or Tether.

Although some people might get payments over a few weeks or months, it’s all part of a move to establish confidence. Later, the scammers will demand more money than the amount they’ve paid, causing the victim a major financial loss.

Common Red Flags in TikTok Crypto Job Scams

Early identification of a TikTok crypto fraud is essential to prevent becoming a victim. When looking for a crypto job offer on the platform, here are several red flags to note:

Upfront Payments

Legitimate companies will never ask for upfront payments or deposits to land you a job. It is highly indicative of fraud whether you have to pay money for access to tasks, registration, or verification. This is particularly true if payment is sought in cryptocurrencies, as these transactions are difficult to undo.

Unrealistic Earnings Promises

Any offer guaranteeing significant returns for little effort should cause mistrust since it is unrealistic. Should it seem too good to be true, it is most likely not true.

Lack of Clear Job Details

Legitimate employment offers give precise information on the position, the organization, and the obligations. See it as a warning flag if the job description is imprecise or if the company’s information is difficult to locate on the internet.

Pressure Tactics

Scammers use haste to fool victims into acting fast, so they employ pressure tactics. Take a step back if they inform you that you need to make a quick decision to prevent passing on a chance. Real businesses will not force you to act quickly.

Unprofessional Communication

Watch the way the correspondence is handled. Be careful if all of your exchanges are over WhatsApp, TikTok DMs, or other unofficial means. Usually, legitimate organizations use official emails and systems for job-related correspondence.

Why Job Seekers Are Vulnerable to Crypto Scams

For people trying to find work, the idea of a flexible, remote offer is quite tempting. Those who might not have many other choices find these “opportunities” appealing because of their simple access to platforms like TikTok.

Furthermore, the switch to remote work during the COVID-19 epidemic has made digital hiring procedures and virtual job interviews second nature. Moreover, many individuals still lack knowledge of how cryptocurrencies operate.

Hence, scammers can easily fool them. More importantly, it’s almost impossible to recover the money due to the technology behind the creation of cryptocurrencies.

Avoiding Crypto Scams on TikTok

Fortunately, there are some strategies you can employ to guard yourself against becoming a victim of crypto employment scams on TikTok.

Research the Company

Do your investigation before accepting an employment offer. Search the company online to determine if it is authentic. Look for an internet review, a confirmed social media presence, and a corporate website. If you come across little information or a company that seems dubious, rely on your gut feeling and leave.

Never Pay Upfront Fees

Usually, never pay upfront for a job; this is a general rule. No respectable company will ask you to pay them money to begin working, whether that is for training, verification, or access to job assignments.

Be Skeptical of Crypto Payments

Should the offer call for crypto payments, exercise caution. Although some reputable offers could provide this, it is rare and usually dangerous. Before you accept to be paid this way, be sure the firm is open about how payments will be made and that you completely understand how crypto transactions work.

Report Suspicious Accounts

If you come across a dubious job advertisement on TikTok, report the account to the platform instantly. This helps protect others from falling prey to such a scam. You can also notify your local authorities or organizations, such as the Federal Trade Commission (FTC).

Final Thoughts

TikTok job scams are becoming more common as the platform’s appeal keeps rising. But you can guard yourself from these TikTok crypto employment scams by being alert and knowing the signs of fraud.

Never pay advance fees, always thoroughly investigate any employment offer, and be cautious of huge wealth claims. Scammers always change their strategies; hence, it is imperative to be aware and careful when negotiating the employment market on social media platforms like TikTok.

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PNG Group Review – Trade Within Your Comfort Using This Online Broker Platform

PNG Group Review

Today’s traders demand a platform that lets them trade according to their schedule and comfort as they have dynamic daily routines. They want a broker that provides them with ultimate ease and is compatible with their busy lifestyle. So, while searching for such broker platforms in the market, I stumbled upon the PNG Group trading platform.

This platform comes integrated with trading features that are designed to give users comfort and convenience when trading online. In my PNG Group review, I will talk about the various features and functionalities of this specific platform in detail.

I will cover all its different aspects that show its customizability. Using this advanced broker platform, users can trade according to their schedule. They can adjust this platform depending on their routine and lifestyle.

Select a Suitable Trading Account

To start my PNG Group review, I will talk about how this trading platform allows users to select their trading account according to their preferences. PNG Group broker platform has a diverse range of trading account options that go from basic to medium to premium levels. Low-tier accounts come with basic trading features and have low deposit requirements whereas higher-tier trading accounts come with additional features and functions and are expensive.

Traders can choose their user account according to their experience and skill level. They can pick an account that best suits their needs and budget. If they want a basic account that is easy to use, they can pick from a low-tier range. And if they want to have exclusive perks like a personal analyst or an account manager, they can go for a more premium-level trading account.

Choose Desired Trading Assets

PNG-Group.net trading platform has a wide range of asset classes for users to trade in. It offers many traditional and modern asset class options like forex pairs, stocks, indices, and many more. It also offers some digital asset options like various cryptocurrencies for crypto trading. There are some physical commodities like valuable metals and oils available too that users can add to their trading portfolio.

With the availability of so many asset classes in one platform, traders can add desired assets to their portfolios. They can do all their trading and build a diverse portfolio from one place. They don’t have to go through the hassle of joining multiple trading platforms just to trade in a specific market.

Get Market Updates and Insights

For every online trade, it is essential to stay updated with market conditions and trends so they don’tmiss out on opportunities and build well-informed strategies. For this, they have to go on different news channels and financial websites, which can be quite hectic. To make this easier, the development team of the X broker platform has created a market news section within the platform. Traders can head over to this section to get all the latest market news and updates whenever they are using the platform.

Similarly, this online trading platform has also built a library of educational resources and materials for users to improve their trading and market knowledge. There are many explanatory guides, detailed eBooks, informative articles, and video-based tutorials available in this library. Traders can choose whichever learning materials they find suitable or easier to understand.

Trade Anytime You Want

Lastly PNG-Group.net trading platform is designed to be highly accessible and compatible so traders can adjust their trading routine depending on their real-life schedule. This digital platform is accessible 24 hours a day, seven days a week, so users can log in and trade whenever they want. Using this platform, users can trade from the comfort of their homes or even if they are traveling.

Moreover, with its highly compatible interface, traders can use this platform on multiple mobile devices like laptops, tablets, or smartphones. With this ease, they can trade using just about any mobile device they have on hand.

Is PNG Group Scam or Legit?

Besides these incredible features, I also want to mention the cybersecurity aspect of this online trading platform. PNG-Group.net broker platform uses effective security measures like the employment of SSL encryption protocol to protect traders’ data from the risk of theft or exploitation. It also has its KYC and AML policies in place ensuring that each trader is verified and there is no suspicious activity going on in the platform. Considering that it also has 2-factor authentication this platform seems legit to me.

Conclusion

To conclude my PNG Group review, I will provide a short summary of all the aspects of this trading platform I have discussed before. This online trading platform has a diverse range of user accounts for all levels of traders. It offers an array of asset classes so users can trade and invest in their preferred ones. It has built a separate news section and library to keep traders up to date and improve their knowledge. Plus, with its high accessibility and compatibility, traders can use it at any time of the day using any mobile device they have on hand.  

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Bitfarms Mines 233 BTC in August: Here’s Why

Prominent Bitcoin (BTC) miner Bitfarms generated 233 BTC worth $13.9 million last month, with its holdings increasing to 1,103 BTC. It happened because Bitfarm’s operational hashrate surged 2% month over month to 11.3 EH/s.

A Notable August Performance for Bitfarms

However, Bitfarms recorded a decline in Bitcoin generation in August, even though its hashrate increased. The company stated that its total of 253 BTC in July had decreased by 8%.

It attributed this decrease to higher-than-average network difficulty during the month. Moreover, Bitfarms’ August output decreased by 39% when compared to the same period the previous year.

This decline coincides with the difficulties miners have encountered since the April halving event, which had a substantial effect on their earnings. With regard to managing its treasury, the BTC miner sold 147 BTC out of the mined ones for $8.8 million.

Its Bitcoin treasury now holds 1,103 BTC, valued at roughly $65.1 million, after adding the remaining 86 BTC, worth $5.1 million.

Bitfarms and its Strategic Acquisition

Last month, the Bitcoin miner agreed to pay $175 million to acquire Stronghold Digital, a competitor in the cryptocurrency mining space. It is anticipated that this deal, which combines debt and equity financing, will strengthen Bitfarms’ energy portfolio.

Ben Gagnon, CEO of Bitfarms, stressed the significance of this acquisition in readjusting their energy strategy to satisfy future needs. Interestingly, Riot Platforms made an earlier attempt in April to pay roughly $950 million to acquire Bitfarms.

Riot, however, retracted its initial offer of $2.30 per share after encountering difficulties in communicating with Bitfarms’ board. Riot persisted in acquiring Bitfarms’ stock in spite of this setback, growing to become the company’s largest shareholder with a 19.9% ownership position.

Concerns over Bitfarms’ Governance Issues

Furthermore, Riot Platforms has voiced concerns about recent Bitfarms governance changes. In an open letter to Bitfarms shareholders, Riot’s CEO, Jason Les, and Executive Chairman Benjamin Yi expressed their concerns over the prevailing issues.

They contended that the firm’s recent leadership changes were only “reactive” and insufficient to address the fundamental governance problems within the company. Nicolas Bonta and Emiliano Grodzki, two of Bitfarms’ co-founders, recently left their positions on the board.

Following their exits, Fanny Philip was named Grodzki’s replacement, and Ben Gagnon assumed Bonta’s position on the board and became the new CEO. Riot was particularly troubled by Bitfarms’ use of a “poison pill” tactic.

It is a defensive mechanism that involves issuing new shares if an entity acquires more than 15% of another company and is often used to discourage hostile takeovers.

Upcoming Shareholders Meeting

Meanwhile, Riot has lowered the number of independent directors on the board to two — John Delaney and Amy Freedman. While Delaney has a wealth of knowledge in politics and public affairs, Freedman contributes knowledge in corporate governance and capital markets.

Riot believes that these appointments will improve Bitfarms’ strategy alignment with shareholder interests. Riot’s executives stressed how important it is for the mining firm to give its shareholders a significant voice in the company’s future.

They highlighted Finkielsztain’s part in the company’s previous difficulties, such as the CEO succession plan that resulted in five CEO changes for the BTC mining firm in a short period.

Bitcoin’s September Challenges

Historically, September has always been a difficult month for Bitcoin. The cryptocurrency’s price has typically dropped by 4% during this month since 2009.

Since September has been bearish for six of the previous seven years for the leading digital asset, many investors proceed cautiously during this time. Surprisingly, Bitfinex traders are betting on a different outcome for Bitcoin this September.

The platform’s total Bitcoin margin longs have increased by 3,000 BTC since August 28 to about 64,350 BTC. In less than ten hours, the annualized interest rate on these borrowed funds has also increased, surpassing 20%. 

This unanticipated increase followed a customary “red” month-opening period, during which prices first declined. With October approaching, optimism about a market turnaround is high. In the past, October has proven to be a prosperous month for Bitcoin, averaging a gain of 22.9% over the previous nine years.

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Revenue for Bitcoin Miners Hits 11-Month Low in August 2024

Rising Mining Difficulty Squeezes Profits for Bitcoin Miners

Bitcoin miners experienced a sharp drop in revenue in August 2024, their lowest earnings since September 2023. Data from Bitbo revealed that miners generated $827.56 million last month, a significant decrease from July’s $927.35 million.

The drop represents a 10.5% decline month-on-month, marking a continued downward trend in miners’ earnings throughout 2024. The revenue slump can be attributed to several factors, notably the rising difficulty in mining BTC.

In August, the mining difficulty reached a record high of 89.47 trillion, up from 86.87 trillion in July. This increase has made it harder for miners to process transactions successfully. The decline in earnings is also reflected in the number of Bitcoins mined in August.

Miners produced 13,843 BTC, down from approximately 14,725 BTC in July. This reduction is partly due to the Bitcoin halving event in April, which cut mining rewards by 50%. As a result, miners now receive 3.125 BTC per block, compared to 6.25 BTC before the halving.

Transaction volumes have also contributed to the revenue drop. Although the average number of daily confirmed transactions peaked at 631,648 on July 31, it fell to 594,871 by the end of August, according to data from Bitbo and Blockchain.com.

Bitcoin Miners Explore AI

The combination of increased difficulty, lower transaction volumes, and reduced block rewards has forced some miners to explore alternative sources of income. In particular, some have shifted their computing power to artificial intelligence (AI) applications, securing deals that have reportedly netted them billions of dollars.

The trend of falling revenue has been consistent since March 2024, when Bitcoin miners earned nearly $1.93 billion during a period of high market activity. That month, BTC’s price reached an all-time high of over $73,500.

However, by August, the price dropped to around $57,000. This decline in Bitcoin’s value has further strained miners’ margins, leading to their worst revenue month in nearly a year.

Whales Accumulate More Bitcoin

Meanwhile, Bitcoin whales are accumulating more of the cryptocurrency as smaller traders sell their holdings. This trend has resulted in a significant increase in the number of wallets holding 100 Bitcoin or more, reaching levels not seen in the last 17 months.

Recent data from blockchain analytics platform Santiment revealed that over 283 wallets crossed the 100 BTC mark in August alone. This surge brings the total number of such wallets to 16,120, marking a notable shift in the distribution of Bitcoin among large holders.

The increase in Whale’s Bitcoin purchases comes at a time when retail traders have been selling their BTC, inadvertently creating opportunities for larger players to increase their holdings. Adam Back, CEO of Blockstream and inventor of Hashcash, noted that whales have been consistently buying since BTC’s price dipped from $62,000 to around $58,000 on August 28.

Back pointed out that whales purchase Bitcoin at a rate that matches the daily mining output, a clear indication of their intent to accumulate. In addition to the growth in wallets holding 100 BTC or more, there has been an uptick in the number of wallets holding at least 10 BTC, often referred to as “sharks.”

Santiment estimates that wallets containing between 10 and 10,000 BTC have collectively accumulated over 133,000 coins in the last 30 days, a haul worth more than $7.6 billion at the crypto’s current price.

Rising Whale Activity Linked to Market Fear

Santiment attributes the rising whale activity to the impatience of smaller traders, who are offloading their assets at a loss. As these retail traders exit the market, whales are swooping in to buy up BTC at what they consider discounted prices.

The Crypto Fear & Greed Index, a measure of market sentiment, has remained in the “Fear” range throughout August, with an average rating of 37. Regardless of market direction, these larger holders seem poised to take control of a growing share of the Bitcoin supply.

Vivek Sen, founder of Bitgrow Lab, noted that significant whale activity has historically been a precursor to new all-time highs for BTC. The last major accumulation by whales was followed by Bitcoin reaching a new peak. Hence, the question is, could this whale accumulation lead to another BTC price peak?

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