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Bitcoin Miners Resume Accumulating, While BTC Exchange Inflow Drops to Major Lows: Glassnode

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Mon, 07/12/2021 - 08:02
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Yuri Molchan
Data provided by Glassnode and Santiment analytics companies signifies that Bitcoin miners have resumed accumulating BTC and BTC inflow to exchanges sees a sharp decline
Bitcoin Miners Resume Accumulating, While BTC Exchange Inflow Drops to Major Lows: Glassnode
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Several positive events for Bitcoin have occurred recently, according to charts provided by Glassnode and Santiment analytics vendors.

The Balances of Bitcoin miners' wallets are growing again, and the BTC hashrate is recovering.

Miners are accumulating BTC again after a pause

Crypto miners' wallet balances have begun growing again as miners have resumed accumulating the world's flagship digital currency that they mint.

According to a Glassnode chart, after a period of heavy Bitcoin selling in June, in July, mining companies have been stacking Sats actively.

Prior to June, they had also been accumulating BTC, as can be seen on the chart. This signifies that fewer BTC will flow into the market now to be sold.

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Source: Glassnode

Meanwhile, as per a tweet published by the Santiment analytics team, Bitcoin inflow to the wallets controlled by crypto exchanges has dropped to a 50-day low. The same is true for the Bitcoin supply held by centralized crypto exchanges.

Santiment experts emphasize that this is likely to be a sign of diminishing selling pressure on Bitcoin.

Related
South Korean Banks Hesitant to Extend Partnerships with Crypto Exchanges

Bitcoin hashrate is recovering

Another Glassnode chart shared by the CIO of Moskovski Capital indicates that the Bitcoin hashrate has started rebounding after a massive recent drop.

The sharp decline took place in June when the Chinese government imposed a full-scale crackdown on local cryptocurrency miners, banning them from accessing energy sources, including miners in provinces that have a lot of spare energy, including that coming from hydro power stations.

This move by the Chinese authorities all over the country has caused mining companies to begin relocating, choosing friendlier regions for their business, such as Kazakhstan, Canada and the United States.

Back in mid- and late June, the Bitcoin hashrate plunged to the 58 EH/s level—the lowest since 2019—from the all-time high of 171 EH/s reached in May.

Chinese crypto journalist Colin Wu assumed that it would be hard for the BTC hashrate to recover even back to 130 EH/s, not to mention 171 EH/s, unless China reverses its witch hunt on crypto mining companies.

However, now, the BTC hashrate has recovered to the 92.5 EH/s level, according to Blockchain.com.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.