Bitcoin mining could be a win-win solution to countries like the United Kingdom that are having problems with their excess output from renewable energy.

The executive of a US-based digital asset technology firm suggested that Bitcoin mining could be the best way to eliminate wastage and grid congestion on renewable energy.

The Bitcoin Solution

Marathon Digital CEO and Chairman Fred Thiel offered a solution to grid operators and renewable assets who find it difficult to address wastage and grid congestion.

Thiel, a known crypto miner, suggested that Bitcoin mining could help them manage grid congestion due to excess energy. He expressed his opinion on the reported wastage from wind farms in the United Kingdom.

The Marathon Digital executive lambasted renewable energy operators for the excess energy being wasted and its corresponding congestion costs, saying they should tap digital mining to solve this issue.

Thiel added that BTC mining is one of the possible remedies that will make renewable energy more economically viable.

“Grid operators and renewable asset owners must realize that adding large dispatchable loads such as bitcoin mining behind the meter at renewable energy sites is the only way to eliminate grid congestion and wasted energy,” he explained.

Data showed that the cost to upgrade the grid for renewable energy transition by 2050 could reach more than $26 trillion. The digital asset company CEO said that the consumers will be one to shoulder the upgrade costs, reducing the economic burden on rate-payers.

Matthew Sigel of VanEck agreed that excess energy could be diverted to mine Bitcoin.

UK Paying £1B to Waste a Record Amount of Power

The UK Could be Mining Bitcoin With its Excess Wind Energy, but Instead they are paying Wind Farm Operators a Billion Pounds a Year to Turn off the Turbines.

NGMI! 🤡 pic.twitter.com/3tNFlLcHyb

— matthew sigel, recovering CFA (@matthew_sigel) December 3, 2024

Managing Grid Congestion

The Bitcoin miner revealed that Marathon Digital used Bitcoin mining to monetize its energy.

Marathon Digital, a publicly listed company, was able to buy Bitcoin using proceeds from convertible notes.

Reports said that many enterprises in various countries are exploring how to utilize crypto in managing excess energy, a solution that most British energy providers are not considering at the moment.

For instance, the Bern region in Switzerland has already approved the recommendation to assess Bitcoin mining to help stabilize the power grid by utilizing excess energy.

🟠🟠Bitcoin & Canton of Bern🟠🟠:

We successfully passed a postulat requiring the government to assess integrating Bitcoin mining into Bern’s energy strategy. Good news: Switzerland’s summer solar power surplus will make Bitcoin mining highly competitive globally.… pic.twitter.com/38aOu4BZtC

— Korab Rashiti 🐍 (@KorabRashiti1) November 28, 2024

The Swiss region’s parliament voted in favor of the proposal. Hence, the Swiss government is now evaluating the integration of Bitcoin mining into its energy strategy.

$1.3 Billion Congestion Cost

A Bloomberg report revealed that the United Kingdom is shelling out $1.3 billion in congestion costs to wind farms to urge them to shut down their operations.

The report added that wind farms need to temporarily cease their operations because their grid cannot handle the excess energy output.

In the last few years, the country has boosted its wind power generation capacity. In the last five years, its offshore wind power generators’ capacity has increased by 50%. Experts are projecting that in the next five years, the country’s wind farms’ capacity will double.

However, its grid capacity could not keep up with the pace of the increase in wind power generation capacity leading to congestion issues. As a result, utility providers have to pay some plants to switch off while paying others to turn on.

Featured image from Getty Images, chart from TradingView

Bitcoin surged past $99,000 on Wednesday, driven by Federal Reserve Chair Jerome Powell’s remarks comparing the cryptocurrency to gold.

Jerome Powell, speaking at the New York Times DealBook Summit in Manhattan, described Bitcoin as a significant asset similar to gold, distancing it from the idea of a functional currency. 

Bitcoin is a Competitor for Gold

While many cryptocurrency enthusiasts view Bitcoin as a potential alternative to the US dollar, Powell made it clear that he does not share this perspective. When asked if he personally invests in crypto, Powell remarked that he’s not allowed to.

Industry leaders have long considered Bitcoin to be the ‘digital gold.’ This is due to BTC’s year-on-year increase and dominance over other fiat assets.

In fact, several Bitcoin ETFs in the US market have already outgrown their gold counterparts within less than a year of launching.

“It’s just like gold only it’s virtual. People are not using it as a form of payment, or as a store of value. It’s highly volatile. It’s not a competitor for the dollar, it’s really a competitor for gold,” Powell said. 

Powerll’s statement comes as the incoming Trump administration signals potential moves to support digital assets. During his campaign, Trump embraced cryptocurrencies. He accepted donations in several tokens, including Bitcoin, portraying himself as a pro-crypto candidate.

“Bitcoin is quickly being recognized as gold 2.0, even by traditional finance and the government. This is what winning looks like,” popular crypto advisor Dan Held wrote on X (formerly Twitter).

In July, he pledged to establish a national Bitcoin reserve. Trump’s Republican colleagues have also supported this idea by proposing Bitcoin reserves at different state levels. 

Meanwhile, Trump has nominated Paul Atkins, a pro-crypto attorney, to lead the SEC. Atkins previously served as a Republican SEC commissioner during the Bush administration. 

The industry is optimistic his leadership may signal a shift to more lenient crypto regulations compared to outgoing SEC Chair Gary Gensler, who will step down on January 20.

Bitcoin’s price, which had dipped below $94,700 earlier on Wednesday, climbed sharply following these developments. The cryptocurrency has experienced a 135% rally this year, with its highest value reaching $99,768 in early November.

Overall, Jerome Powell’s Bitcoin remarks are another indication of financial institutions and government bodies realizing the potential of digital assets and their importance in transforming the national economy.

The Bitcoin price has continued on its consolidation path below the $99,000 price level, but investors remained determined to break above six digits. An analysis on the TradingView platform relays this bullish sentiment, with crypto analyst Waslad advising investors to hold onto their BTC.

BTC’s Bullish Setup Within A Broadening Wedge Pattern

As the analyst pointed out, the Bitcoin price has been trading in a broadening wedge pattern since early November. This technical structure has been highlighted by a series of higher highs and higher lows. Waslad’s analysis focuses on the movement of the BTC price within this broadening wedge pattern, with the target well beyond the $100,000 mark.

However, the analyst highlighted the $99,600 price level as the most significant obstacle preventing a $100,000 Bitcoin price. A successful breakout of this level would not only increase investor confidence but also set the stage for the Bitcoin price to achieve its next major price target of $100,000. 

The analyst advises re-accumulating BTC within its current trading range, suggesting that the $99,600 level serves as an ideal cap for those looking to capitalize on the anticipated breakout. Should BTC clear the $99,600 resistance, Weslad predicted a sharp rally, with the Bitcoin price reaching the $115,000 to $117,000 range. This translates to a 19% and 21% increase, respectively, from the current Bitcoin price. This projection aligns with broader market sentiment, as many traders anticipate further upside in the ongoing bullish cycle.

Risky Moves For Bitcoin

Despite the bullish sentiment surrounding the Bitcoin price, recent holder dynamics have risen that might increase selling pressure. Particularly, on-chain data has brought attention to a significant transaction by the US government, which moved approximately 20,000 BTC valued at around $1.92 billion at current market rates to Coinbase wallets.

Such a move has prompted concerns of a looming selloff by the US government, which could increase the selling pressure in the short term. This, in turn, could derail BTC’s push towards $100,000, at least in the short term.

Nonetheless, any such selloff would be easily absorbed by the current buying momentum surrounding BTC. A significant driver of this demand has been the inflow of funds into Spot Bitcoin ETFs. Data from CryptoQuant shows that Bitcoin ETF demand is as strong as at their initial approval this year. According to data from SoSoValue, Spot Bitcoin ETFs are currently on four consecutive days of inflows, with $675.97 million worth of inflows on December 3.

These dynamics suggest that the Bitcoin price is still on the path to reach the $100,000 mark before the end of the year. At the time of writing, BTC was trading at $96,668, up by about 1% in the past 24 hours.

Featured image created with Dall.E, chart from Tradingview.com