Average hash rates fell approximately 55% from its peak in May 2021 to June 2021 largely because of the recent crackdown by Chinese authorities across several of its regions. Nevertheless, Glassnode’s most recent weekly on-chain analysis report demonstrates the Bitcoin mining sector is exhibiting indications of a robust rebound. Bitcoin’s current mean hash rate is now down by 39% instead of 55% since its high in May 2021.
Bitcoin returns to accumulation
Furthermore, for the first time in nearly five weeks, the Bitcoin Miner Net Position Change (BMNPC) measure has returned to accumulation, according to Glassnode’s metrics. Despite recent market problems, as we reported last week, operational Bitcoin miners witnessed an increase in profitability. Glassnode accounted for two possibilities in the weekly report for the hash rate shift:
Exchanges see substantial withdrawals
During the previous few weeks, major Bitcoin wallets transferred significant sums of the world’s largest cryptocurrency from the leading crypto exchanges. Two crypto wallets moved a total of 7,062 BTC from the digital exchange Coinbase in the first week of July. Glassnode’s recent analysis noted an increase in withdrawals from significant cryptocurrency exchanges. Glassnode added: Large Bitcoin addresses with 100 to 10,000 BTC currently contain over 9.13 million BTC. [coinbase]
