Are Miners Losing Interest Already?
In January 2022, the entry amount in the reserve for Bitcoin miners was 1.82 million; However, on-chain analysis reports show that the current amount remaining in the reserve is the same as it began the year with.
The amount of bitcoin amassed over the course of the year has also been returned to the market as a result of the intense crypto winter, which resulted in a massive dump of these BTC tokens on the market. This dump erased all traces of a reserve increment over the course of a year.
However, according to Glassnode, during the month of July, the volume of bitcoin in the reserve reached a two-year high, indicating a market recovery following the Terra Luna crash, which shook and destabilized the market.
A similar meltdown that occurred in May, however, has re-entered the market with the FTX crash, causing the crypto market to bleed.
The hashrate also decreased as miners’ attitudes toward mining changed dramatically. Many factors contribute to the drop in miners’ Interest, including an increase in hash difficulty, increased energy consumption, high maintenance fees, and an increase in machinery purchase fees.
This drop in miners’ reserves and activities was caused by poor market conditions, and if this continues, miners will undoubtedly face impending doom.
Investors Still Maintain Bullish Stance Despite The Crash
This year has been difficult for the cryptocurrency community as well as miners, owing to rising energy costs and falling Bitcoin prices.
To recover from these effects, miners have taken the difficult but simple route of selling off their tokens, resulting in massive dumps rather than buys in the market.
Despite all indicators pointing to a market downtrend, investors remain bullish on the market’s current state. According to reports, there have also been accumulations, with investors buying into the dip from August to October.
Another bullish trend worth noting is the withdrawal of funds from centralized exchanges. The crypto crashes this year have highlighted the dangers of centralized exchanges. And the shift to personal wallets indicates that investors are looking for another way to cope in the cryptocurrency space, indicating that they intend to ride for a long time.
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