The lead coin, BTC, broke beneath the $30K support zone again in less than one month. Bitcoin trades at $29.600 at the moment as the crypto market experiences reduced institutional demand. Also, the flagship currency sees an increased mining hash rate plunge, while mining difficulty sees negative adjustments.
Why the Crash?
The May crypto crash seems to have discouraged institutional investors that appear to seek less-risky alternatives as BTC struggles to surge. GBTC reflects the declined interests as the pair trade 15.3% lower. Also, the Purpose ETH sees decreasing net inflows at the moment. According to Glassnode data, ETH’s net outflow lost 90.76 Bitcoin.
BTC has had a downtrend hash rate since China cracked down on crypto trading and mining undertakings.
The Bitcoin network had its hash rate losing 54% since its highest peak in mid-May. That led to the re-calibration of BTC code to ensure a 28% drop in mining difficulty. BTC.com declared that mining the asset is simple, translating to the 4th consecutive BTC mining difficulty negative adjustment by 4.8%. Though that might mean more profits for crypto miners, it also shows a security problem for BTC blockchain.
On-chain data shows increased Bitcoin deposits on crypto exchanges. The numbers continue to surge over 28,700 BTC, with the highest inflow on 16 July. For now, market players need to beware of the bearishness that waits since BTC to exchange movements indicates sell-offs.
Keep in mind that the crypto market is not the only space witnessing the recent losses. Global stock markets saw pullbacks as Corona cases surged on 19 July. S&P 500 (-1.59%), NASDAQ (-1.06%), and DOW (-2.09%) suffered the plummets.
DASH (+17%) and BTCST (+24%) were the assets that saw surges among the top-200 digital coins.
The total crypto market cap stands around $1.19 trillion, while BTC has its dominance at 46.7%. Bitcoin had plunged below $30K as China intensified its crypto clampdowns in June.
Most analysts predict that BTC will hit $25K before registering bullish moves. Also, others believe that the leading coin will plunge further.
Meanwhile, other assets might mimic BTC as it hovers beneath $30K. Remember that altcoins follow Bitcoin’s trend due to its dominance.
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