In 2024, Bitcoin miners significantly reduced their exchange activity, indicating a major shift in market behavior. Historically, high miner-to-exchange transfers often led to price corrections, but the current trend suggests a more strategic approach. This shift could have important implications for Bitcoin’s future.
Decline in Miner Transfers to Exchanges
Recent data from Crypto Slate highlights a marked decrease in Bitcoin miners sending their holdings to exchanges. Traditionally, miners would sell their Bitcoin during price surges, increasing exchange activity. However, a chart spanning from 2015 to 2024 shows a consistent downward trend in these transfers since 2018, despite Bitcoin’s price experiencing significant rises.
This decrease indicates that miners are increasingly confident in Bitcoin’s long-term value, choosing to hold onto their assets rather than selling them during price peaks. This strategic move points to greater financial stability and efficiency within the mining sector, suggesting that miners may be anticipating future price gains.
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Rising Bitcoin Network Hashrate
In addition to the drop in exchange transfers, U.S.-listed Bitcoin miners reached a significant milestone in August, increasing their share of the Bitcoin network hashrate for the fourth consecutive month to a record 26%. This growth highlights their strengthening role in the global mining landscape.
The overall network hashrate also saw an increase of approximately five exahashes per second (EH/s) in the first two weeks of August, bringing the average hashrate to 621 EH/s, a 1% rise. Despite this increase, the current hashrate remains 30 EH/s below pre-halving levels, indicating potential near-term volatility.
Bitcoin Price Analysis
Bitcoin’s price has seen fluctuations recently but remains up by 35% year-to-date and 104% year-over-year. These trends suggest that while U.S.-based miners are increasing their share, Bitcoin’s price movement has slowed somewhat. Currently, Bitcoin is trading at $59,190, showing a 1.5% increase in the last 24 hours, even as trading volume has decreased by 23%. The market cap stands at $1.16 trillion.
Cre: coinpedia
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
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