In July, hints on the accumulation of Bitcoin started to emerge as the network’s hashrate continued to surge and exchange outflows increased.
As of the moment, the pressures thrown on the market brought by China’s crypto crackdown are beginning to subside, and the hashrate is starting to show signs of recovery. Due to this, traders focused on how the price will be affected by the unlocking of over $550 million of Grayscale’s GBTC shares.
On July 12, analysts’ data showed that the early morning downtrend of Bitcoin proceeded in the afternoon. In addition, BTC’s price plummeted below the $33,000 support level following bears taking control of the market.
Last Monday, Grayscale grabbed attention since several media outlets reported that it has publicly filed three Form 10 registrations with the U.S. Securities and Exchange Commission. It brought the company’s managed figure of publicly reported trusts to five, which include Bitcoin Cash, Ethereum Classic, Litecoin, Bitcoin, and Ether.
On another note, the crackdown of China on Bitcoin mining caused a 55% fall in the network’s hashrate. It is due to the shutting down of BTC mines across the nation and the migration of operations overseas.
An analyst stated that about 29% of the lost hash power now came back online since Chinese miners were successfully relocated.
The Miner Net Position Change’s gauge is now showing that they are back in accumulation mode after almost a month of selling from miners.
Furthermore, the amount of Bitcoin reserves that were held across all exchanges subsided by over 16,100 BTC between June 28 and July 11 as a result of the progressed outflows. Several experts interpreted this phenomenon as a bullish development for BTC as token holders are emerging to withdraw Bitcoin. These are then stored in long-term storage as the market is waiting for the next significant higher move.
Meanwhile, recent data indicates that the amount of Ethereum held in crypto exchanges’ reserves reached new daily lows since early July.
According to an analyst, in order to determine if this development is bullish or bearish for the top altcoin, one must take a look at the factors that play a role in the increased demand for Ether. It includes the Eth2.0 staking contract, increased transactions in decentralized finance, and the possible excitement of traders on the implementation of EIP 1559.
One of the sources for the increased demand for Ether is the Eth2 staking contract which transcended the 6 million ETH mark last June 30. Experts’ data shows that July 1 saw the most huge single-day outflow of Ether from exchanges since January 21, with over 596,000 Ether established exchanges.
Furthermore, the most recent data from Eth2 Launchpad indicated that the current stake is 6,166,661, which shows that not all ETH withdrawn from exchanges went to staking.
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