Swiss National Bank Rejects Bitcoin as Reserve Asset Due to Volatility Concerns
The Swiss National Bank (SNB) has firmly dismissed proposals to include Bitcoin in its currency reserves, citing structural risks and extreme volatility in cryptocurrency markets. SNB President Martin Schlegel emphasized concerns over liquidity fragility during financial crises, stating that crypto markets may appear liquid under normal conditions but fail during critical times. This decision highlights ongoing skepticism among traditional financial institutions regarding Bitcoin’s suitability as a reserve asset, despite growing adoption in other sectors.
Swiss National Bank Rejects Bitcoin Reserve Proposal Amid Volatility Concerns
The Swiss National Bank has firmly dismissed calls to include bitcoin in its currency reserves, citing structural risks in crypto markets. President Martin Schlegel highlighted liquidity fragility during crises and extreme price volatility as incompatible with reserve asset requirements.
"Market liquidity for cryptocurrencies may appear adequate in normal conditions but evaporates precisely when needed most," Schlegel stated at the bank’s General Assembly. The remarks came in response to advocacy from the Bitcoin Initiative, a Swiss pro-bitcoin organization.
The SNB’s position reflects growing institutional skepticism about crypto’s role in sovereign wealth management. While bitcoin proponents argue its scarcity mirrors gold’s reserve characteristics, central bankers remain unconvinced about its ability to preserve value across market cycles.
Bitcoin Decouples From Nasdaq as Correlation Weakens
Bitcoin’s price action is diverging from its historical correlation with the Nasdaq Composite, marking a potential shift in market dynamics. The cryptocurrency has gained over 10% in the past week while the tech-heavy index declined sharply.
CryptoQuant data reveals the correlation coefficient between BTC and Nasdaq has dropped from 0.91 in January to 0.83. The decoupling suggests Bitcoin may be developing independent price drivers beyond traditional risk asset sentiment.
Ark Invest Forecasts Bitcoin Could Reach $2.4 Million by 2030
Cathie Wood’s Ark Invest has unveiled an ambitious Bitcoin price prediction, suggesting the cryptocurrency could soar to $2.4 million per coin by 2030. Even in a bearish scenario, the firm anticipates a floor of $500,000 within five years.
The updated forecast, released Thursday, builds upon Ark’s earlier analyses in its Big Ideas report. This time, the firm incorporated experimental modeling that factors in Bitcoin’s "active" supply—a nuanced approach to assessing market dynamics.
Such bullish projections from a prominent institutional player underscore growing mainstream acceptance of Bitcoin as a transformative asset class. The prediction comes amid increasing institutional interest in cryptocurrency markets globally.
Bitcoin Mining Costs Surge 47% in Q4 Amid Rising Expenses
Bitcoin mining costs escalated dramatically in the fourth quarter of 2024, with the average cash cost to produce one BTC reaching $82,162 among public miners—a 47% quarterly jump. CoinShares’ latest industry report highlights accelerated hardware deployment, tax liabilities, and non-cash charges like depreciation as key drivers.
Excluding Hut 8’s tax-related unrealized gains impact, cash costs still averaged $75,767 per BTC. When factoring in non-cash expenses, the total production cost ballooned to $137,018. Intensifying competition and hardware turnover compounded pressure on margins as market volatility persisted.
Bitcoin Squeeze Incoming? Binance Data Signals Massive Breakout
Recent data from Binance, the largest retail spot exchange by market share, reveals significant shifts in Bitcoin trading behavior. Between April 19 and April 23, over 15,000 BTC were withdrawn from the platform, marking a reversal from earlier inflows of similar magnitude. This shift coincides with Bitcoin’s price ascent from the $85,000–$87,000 range to above $93,000.
Exchange reserves have steadily declined since April 18, signaling reduced immediate sell pressure. Investors moving BTC to self-custody wallets often indicates growing confidence in future price appreciation. The trend aligns with historical patterns preceding major liquidity squeezes.
Whale activity appears to be declining, suggesting a potential redistribution of holdings among smaller addresses. Such distribution phases frequently precede breakout movements as supply becomes constrained across exchange order books.
