Miners are accumulating BTC on their wallets again for the first time since the beginning of June. Bitcoin hash rate is starting to recover after declining due to the closure of mining farms in China.
There have been several positive developments for Bitcoin in recent days, according to charts provided by research firms Glassnode and Santiment. BTC miners’ wallet balances are rising again, and Bitcoin hashrate is recovering.
According to Glassnode, after a period of intense BTC sales in June, mining companies started hoarding coins in their wallets again in July. They were also accumulating BTC until June, as seen in the chart. This means that there is now less BTC coming into the market to sell.
According to a Twitter post posted by Santiment analysts, BTC inflows to exchange wallets have dropped to a 50-day low. The volume of bitcoins on wallets controlled by centralized exchanges is also declining.
Santiment experts emphasize that this probably indicates a possible decline in BTC sales.
The amount of daily inflow of #Bitcoin to known exchange wallets, as well as the total supply of $ BTC on exchanges, have experienced a sharp 50-day drop, which may point to diminishing sell-side pressure. Read our take on the state of the markets here. https://t.co/WP37e4nrar pic.twitter.com/Fj0V77JU59
– Santiment (@santimentfeed) July 12, 2021
According to another Glassnode chart, Bitcoin’s hashrate has begun to recover from a recent significant drop. The hash rate drop came in June when the Chinese government introduced prohibitive measures against local miners, barring them from accessing energy sources, including miners in hydropower-rich provinces.
This move by the Chinese authorities forced mining companies to look for new jurisdictions, choosing more friendly regions for business, for example, Kazakhstan, Canada and the United States. In mid to late June, Bitcoin’s hashrate fell to 58 Eh / s – the lowest level since 2019 – from an all-time high of 171 Eh / s in May.
Chinese journalist Colin Wu suggested that it would be difficult for the BTC hashrate to recover even to 130 Eh / s, let alone 171 Eh / s, if China does not stop its prohibitive policy on miners. However, now, according to Blockchain.com, the Bitcoin hash rate has already recovered to 93 Eh / s.