The narrative that began from mid-May stretches into July as the bearish market trend remains unabated. Bitcoin slumps below $33k as on-chain activity is below a mark not seen in the past 12 months. Hashrates on the BTC network rugs unimpressively as a result of deserting Chinese miners causing a decline in computational power.
Glassnode Insights recently reported Bitcoin trading at $33,818 over the weekend after a week high at $41,295. Ethereum isn’t left out of the bearish picture due to the low demand for its transactions. Though the market is sliding down, a good number of large-scale investors are holding their stake in Bitcoin, presumably hoping for a bullish break.
Equally, active addresses both on Bitcoin and Ethereum have tumbled down. On the BTC network, the number of activity addresses has decreased by 24 percent to 884,000 from 1.16 million in early May. The story for Ethereum is more critical as it lost 30 percent active addresses to 474k from 676k within the first quarter of the year.
Long Term Holders Reduce Spending While Miners Cause Seismic Mining Shift
Long-term Bitcoin holders who plunged into a loss in profits at the start of the May capitulation are not in a haste to sell. A good number of them have turned to accumulate more of the declining crypto even as they approach cost basis. However, a look at the spending of coins bought within the past 12 months, it has been higher than those acquired before.
As a response to the official ban on Bitcoin mining operations in China, we are witnessing one of the biggest BTC hashrate migrations in history. Some of these miners who are compelled to shut down operations are gradually moving their equipment outside China, some preferring the more accommodating atmosphere in .
Some miners are resorting to selling their equipment and accumulated coins, possibly extending to other climes or exit the industry entirely. While all this might not be exciting news, expectations are high for a gradual recovery. Miners are also incorporating mining with renewable energy.