Goldman Sachs Report Reveals 12% Drop In Bitcoin Held On Exchanges In May
- Goldman Sachs report reveals a 12% decrease in Bitcoin held on exchanges in May, signaling a shift in investor behavior.
- Network congestion on Bitcoin and Ethereum blockchains leads to a decline in monthly address activity, while Bitcoin’s hash rate reaches a new all-time high, indicating continued mining profitability.
Goldman Sachs has reported a large reduction in the amount of Bitcoins held on exchanges, with a 12% decrease noted in May.
In a recent report, Goldman Sachs (GS) highlighted a significant decline in the number of Bitcoins held on exchanges, with a 12% decrease observed in May. Alongside this, the report also mentioned a slight increase in the supply of Ethereum during the same period.
The report emphasized the issue of network congestion across both the Bitcoin and Ethereum blockchains, which garnered significant attention in May. This congestion led to a notable drop in monthly address activity for both bitcoin and ether, with declines of 13.8% and 16.7% respectively. Higher transaction fees deterred user activity on these networks.
Despite the challenges posed by network congestion, the average mean hash rate of Bitcoin continued its upward trajectory, surpassing its all-time high in May. The hash rate experienced a 5.4% increase during the month, indicating the growing computational power dedicated to mining and processing transactions on the Bitcoin blockchain.
In addition, the report disclosed a notable growth of 16.4% in miner revenues for the month of May, which demonstrates the profitability of operations related to Bitcoin mining. According to the definition provided in the paper, hashrate is the total amount of computational power that is used for mining as well as the processing of transactions on proof-of-work blockchains such as Bitcoin.
The research compiled by Goldman Sachs sheds light on the ever-changing landscape of cryptocurrencies, particularly Bitcoin and Ethereum, during the month of May. The important themes that were highlighted in the paper included the drop in the amount of Bitcoin held by exchanges, the issues posed by network congestion, and the good performance of Bitcoin’s hash rate and miner revenues.
This analysis by Goldman Sachs provides useful insights into the shifting dynamics of the cryptocurrency market and its impact on investor behavior and network performance. The analysis was carried out by Goldman Sachs.
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