Data Suggests that Bitcoin Mining Business is on the Mend

The Bitcoin Mining Business Is On The Mend

Average hash rates decreased by roughly 55% from their high in May 2021 to June 2021, owing primarily to a recent crackdown by Chinese authorities throughout many of its areas.

Nonetheless, Glassnode’s most recent weekly on-chain analysis report shows that the Bitcoin mining sector is showing signs of a strong recovery.

Since its peak in May 2021, Bitcoin’s average hash rate has fallen by 39% rather than 55%.

Bitcoin Is Resuming Its Accumulation Phase

Furthermore, according to Glassnode’s measurements, the Bitcoin Miner Net Position Change (BMNPC) indicator has returned to accumulation for the first time in nearly five weeks.

Despite recent market issues, operational Bitcoin miners saw a rise in earnings, as we highlighted last week.

In the weekly report, Glassnode accounted for two explanations for the hash rate shift:

“First and foremost, Chinese miners have effectively moved hardware. Second, formerly outdated gear has been dusted up and given a second chance.”

Significant Withdrawals Are Seen On Exchanges

During the last several weeks, prominent Bitcoin wallets received huge amounts of the world’s largest cryptocurrency from the top cryptocurrency exchanges.

In the first week of July, two crypto wallets transferred a total of 7,062 BTC from the digital exchange Coinbase. According to Glassnode’s most recent study, there has been an upsurge in withdrawals from major cryptocurrency exchanges.

“The aggregate balance [on exchanges] has decreased by about 40k BTC over the last three weeks,” Glassnode noted. This accounts for about 28% of the entire influx of 140k BTC recorded since the local low in April. Our exchange balances now total 2.56 million coins.”

Large Bitcoin addresses containing 100 to 10,000 BTC now hold more than 9.13 million BTC.