Bitcoin volumes hit 5-year lows
Bitcoin volumes are at historic lows. Interest in trading the top crypto has fallen significantly and volatility has also decreased.
According to data from Glassnode, the total amount of coins transferred to and from exchange addresses has come to a standstill.
In other words, both inflows and outflows stagnated alongside Bitcoin price. This could be related to various economic reopenings around the world after over a year of lockdown.
BTC miners’ earnings are rising higher
The hashrate difficulty band is often used to support arguments for a certain tendency in price movement. Hashrate inversions are historically bullish events, but due to the high operating costs of miners incurred by the Chinese authorities, miners may need to offload more government bonds – although this has a diminishing effect after each halving cycle. So far the market has absorbed selling pressure and Bitcoin is trading hands for over $ 34,000 within the same old range.
But there is no darkness without light. The counterbalance to this event is a significant (albeit temporary) boost in sales for the remaining 50% of operating miners.
When Bitcoin was trading between $ 50,000 and $ 60,000 in April, the hashrate was at its peak and total miners’ incomes hit $ 50 to 60 million each day. While prices have fallen 54% since then, the miners who are still up and running have seen in the short term that up to 50% of their competition has been shut down.
As a result, total daily sales are now around $ 25 to 30 million per day. However, that revenue is split among a smaller group of miners while the daily bitcoin spending has remained constant.
Of course, this condition is temporary, and if all else stays the same, miners’ revenues will decline over the next few weeks until there is a broader market recovery.
Since the technical situation remains unchanged, read Monday’s newsletter for a technical summary.
Catch yourself next time.
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