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Bitcoin mining industry might be on the path to recovery, data shows

Bitcoin mining industry might be on the path to recovery, data shows

The Bitcoin (BTC) hash rate has made a solid rebound over the previous week, as the Bitcoin mining sector currently experiences a historic shift.

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 mining hash rate; 7- day average. Source: Blockchain.com data

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:

“Firstly, miners in China have successfully relocated hardware. Secondly, previously obsolete hardware has been dusted off and found a new lease on life.”

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:

“The aggregate balance [on exchanges] has fallen by around 40k BTC over the past three weeks. This represents approximately 28% of the total inflow of 140k BTC observed since the local low set in April. Exchange balances we track are currently holding 2.56M coins.”

Large Bitcoin addresses with 100 to 10,000 BTC currently contain over 9.13 million BTC.

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