Bitcoin (BTC) is starting 2022 with a succession of red daily candlesticks, which eventually brought its price down to levels near $40,000. While the more cautious – or pessimistic – fear the start of a bear market, Binance is dancing in the markets with the bears and stocking up on bitcoins at lower prices.
116,000 more BTC for Binance
Binance is apparently not complaining about the falling bitcoin price. The 3LYJfcfHPXYJreMsASk2jkn69LWEYKzexb address belonging to the exchange thus added on January 4, 2022, 43,000 BTC at an average price of $46,553.68. Binance had confirmed ownership of this wallet in a 2019 tweet.
The exchange was supposed to use this address for issuing tokens on the Binance Chain, starting with bitcoin BEP2 (BTCB) which is a bitcoin-backed token. Binance, however, seems to be using it now as a cold storage wallet for its bitcoins. The wallet now holds 116,601.13647202 BTC.
Bitcoin below $43,000: a race to buy the lows!
As bitcoin loses the $43,000 mark, some bitcoiners are buying the lows, while others are encouraging to do so. New York City Mayor Eric Adams said in his Jan. 6, 2022 interview on CNBC’s Squawk Box that he has yet to receive his first bitcoin salary as mayor. He did, however, reiterate his commitment to making New York a hub for bitcoin and cryptocurrencies.
When the show’s co-host, Andrew Ross Sorkin, pointed out that the price of bitcoin has “gone down,” Adams framed the decline as an opportunity:
“Sometimes the best time to buy is when things are going down, so when they go back up, you’ve made a good profit.”
Bitcoin fell below $43,000, in part due to the release of the December meeting minutes of the U.S. Federal Reserve, which wants to shrink its balance sheet and raise interest rates in 2022, theoretically allowing the institution to regain control over inflation.
The year is starting under red skies for bitcoin. The bulls seem to be running for the moment, with miners in Kazakhstan at a standstill due to an internet outage. Still, Binance seems to have found 43,000 reasons to keep smiling.