Coinbase becomes top Bitcoin holder – Research
Coinbase becomes top Bitcoin holder – Research
Coinbase, one of the largest cryptocurrency exchanges globally, has disclosed its substantial Bitcoin holdings, shedding light on its financial resilience and market influence.
Coinbase, one of the leading cryptocurrency exchanges, holds an impressive $52 billion worth of Bitcoin, according to data from Arkham Intelligence published at X. This massive stash makes Coinbase the largest single holder of Bitcoin, with control over more than 4.3% of the total supply of this cryptocurrency. The significance of this holding is underscored by its potential influence on the broader cryptocurrency market and the decentralized finance (DeFi) sector.
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Arkham Intelligence highlighted Coinbase’s dominant position in the Bitcoin market with a thought-provoking question at X: "How much of this will be channeled into decentralized finance (DeFi)?" This question gains importance in light of Coinbase's recent announcements about cbBTC, a new product expected to have significant implications for DeFi.
Coinbase has been actively promoting cbBTC, which is anticipated to be a game-changer on the Base network – Coinbase's Ethereum layer-2 blockchain. This new digital asset aims to establish a robust Bitcoin economic system on the Base network, positioning itself as a competitor to Wrapped Bitcoin (WBTC).
On a related note, the Bitcoin market recently positively reacted to the latest Consumer Price Index (CPI) data from the United States. According to CME data, there is a 63% likelihood that the Federal Reserve will decrease interest rates by 25 basis points in September, while the probability of a 50 basis point cut stands at 37%.
Matt Hougan, Chief Investment Officer of Bitwise, takeaways from the CPI release, suggesting that the Federal Reserve might begin cutting rates in September, and that a 3% inflation rate could become the new baseline. Both developments are considered bullish for Bitcoin.
However, despite these potentially positive indicators, Bitcoin experienced a sharp decline, briefly falling from $61,800 to below $59,000 by the end of Wednesday's trading session (CoinGecko).
