Bitcoin (BTC) saw a sharp correction that drove the price to a low of $ 30,000After a notable bull run that drove the price to an all-time high (ATH) of $ 64,800 in mid-April.
Bitcoin miners have been on the receiving end because this market crash has reduced their profit margins.
As a result, the net flows of their miner wallets became increasingly negative, as confirmed by Dilution-proof. The on-chain data company explained:
“Bitcoin miners are in pain as the price crash lowers their profit margins. Since Elon’s tweets started on May 12, the hash rate has dropped; probably the miners will be shut down. That is now stabilizing, but the net miner wallet flows are “becoming increasingly negative.”
The hashrate is used to measure the computing power of the BTC network. It enables computers to process and resolve problems that would allow transactions to be approved and confirmed across the network.
As more miners join the Bitcoin network, it will take more computational estimates per second to find the solution. As a result, the hash power will increase and the network difficulty of Bitcoin will increase.
Bitcoin miners reportedly liquidated their holdings by selling at least 5,000 BTC last week.
On-chain activity during the BTC network break-in
according to to the crypto data provider Glassnode:
“On-chain activity on the Bitcoin network has subsided as investors feel uncomfortable about the direction of the market.”
In addition, crypto exchanges have seen significant BTC outflows, as admitted by market analyst William Clemente III. He noticed:
“Exchanges have now fallen over 30,000 BTC in the past 3 days.”
Meanwhile, El Salvador was the first nation to accept Bitcoin as legal tender. This move is expected to boost the country’s economy by creating new jobs and capitalizing on financial inclusion as 70% of the population do not have access to traditional financial services.
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