Bitcoin might be struggling to stay above the $50,000 price level but its fundamentals are presenting an altogether different picture. Bitcoin’s hashrate, one of the most important indicators for understanding how healthy a Bitcoin network is and what its future may hold, has seen an impressive recovery in recent months.
A lot has been said about Bitcoin’s performance over recent months with many investors now cautioning against investing in cryptocurrencies due to their volatile nature and lack of stability when compared to other financial assets such as stocks or bonds; however, despite these contentious issues, there appears no sign off alarms for this currency just yet – instead what we’re witnessing is simply evolution at work where old problems evolve into new opportunities because innovation never stops!
The Bitcoin mining world was in an uproar this past May when the hashrate dipped to just over 180 Exahash/s. However, with some clever engineering and hard work on behalf of cryptocurrency enthusiasts everywhere; we have seen incredible progress ever since! Today’s rate sits at floated around 172 Exahash/s worth today’s computing power being put towards solving these algorithms- which means that there will always be someone out here willing(and able!)to mine them if they’re needed or wanted by society as well.
Glassnode notes, “Bitcoin hashrate has almost completely recovered, sitting only 4% below the ATH (7-day moving average basis). Network hashrate fell by over 50% in May following China’s ban on BTC mining. Hashrate has since climbed by 93% from the lows, hitting 172 Exahash/s today.”
China’s ban on crypto mining was announced earlier this year, and many leading companies moved out of the country. The news came as a major setback for those who were hoping to make money off cryptocurrency trading or investing- but it also meant that new opportunities arose elsewhere!
Bitcoin mining has undergone a dramatic change over the past year. As digital assets became more popular and competitive, Bitcoin’s hashrate decreased significantly- dropping from its all-time high.
It was a long, hard road to get back on track. But with the rising hashrate and overall profitability of leading BTC miners increasing again due to its recent upswing in value, things are getting better for all those who have been patiently waiting out this crypto storm by holding onto their mined coins until they can finally sell them at an attractive price once stability returns within our markets once more!
Bitcoin Exchange Inflows
Bitcoin has experienced a shortage of supply since May 2021 on leading digital exchanges. This is due to long-term holders transferring their bitcoins into cold wallets, which keep them safe from hackers and other risks associated with online storage such as email accounts or social media profiles where personal information may be compromised during cyberattacks.
Glassnode mentioned, “During the capitulation in May, exchanges saw a notable and sustained uptick of BTC inflows, with periods of 10.4k and 13.9k net BTC deposits. This contrasts with the present moment, where recent peak exchange inflows are a fraction of the size, at 2k and 3.2k BTC.”
The company adds, “Bitcoin holders aren’t behaving as they have in prior moments of weakness, hinting at an underlying confidence, and largely confirming weakness was more heavily influenced by derivative markets rather than spot selling.”