Is this accumulation of miners a good indicator for Bitcoin?
According to data provided by Glassnode and Santiment, there have been positive developments for Bitcoin lately. As Bitcoin miners continue to accumulate the leading cryptocurrency Bitcoin, their wallet balances have started to grow again. According to the Glassnode chart, mining companies are actively accumulating BTC in July, after the heavy Bitcoin selling period in June. Considering that miners have also accumulated BTC before June, this may explain that less BTC sales will occur in the market.
According to a tweet shared by the Santiment team, Bitcoin inflows to wallets controlled by cryptocurrency exchanges fell to a 50-day low. The same is true for the Bitcoin supply held by centralized cryptocurrency exchanges. Santiment experts underline that this could be a sign of decreasing selling pressure on Bitcoin.
Bitcoin hash rate recovers
Another Glassnode chart shared by the CIO of Moskovski Capital shows that the Bitcoin hash rate has started to recover after a large recent drop.
Bitcoin hashrate is rebounding.
The network is regenerating as it should.
— Lex Moskovski (@mskvsk) July 11, 2021
The sharp drop in June came as the Chinese government put a full-blown crackdown on local cryptocurrency miners, banning them from accessing energy sources, including miners in provinces with a lot of backup energy, including from hydroelectric power stations.
This move by Chinese authorities across the country has caused mining companies to start relocating to more suitable regions for their business, such as Kazakhstan, Canada, and the United States.
In mid- and late-June, the Bitcoin hashrate dropped from an all-time high of 171 EH/s reached in May to 58 EH/s, the lowest not seen since 2019. However, according to Blockchain.com, currently the BTC hash rate has increased to 92.5 EH/s.
Bitcoin (BTC) continues to be traded at $ 34,303 as of writing.
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