BTC On Chain Analysis: Looking At The Impact Of Miner Migration

Review the on-chain data on Bitcoin (BTC) miners, especially the average block curation and mining difficulty, to better understand the impact of miner migration in the current time.

Migration has greatly increased the time it takes to dismantle a block. This has been corrected by significantly reducing the mining difficulty.

Average block generation time and mining difficulty

The average block generation interval is the average time (in seconds) that a block must be depleted. If a block takes too long to mine, the difficulty adjusts over the next period and gradually decreases so that the block will be mined in a more reasonable time.

The average block generation period peaked on July 2nd at 1,033 seconds (using a 7-day moving average). This is the highest value since 2009.

This is a clear difference to the average period since the beginning of 2020, which is between 500 and 750 seconds.

Source: Glass knot

However, the event was transient and the average block generation interval has decreased by 800 seconds since then.

Due to the increased time to dismantle a block, the difficulty level was adjusted shortly afterwards.

It fell back to June 2020 levels when the BTC price was around $ 9,000.

Increasing the time it takes to mine a block has almost got miners to surrender, which can only be fixed by decreasing the mining difficulty or increasing the BTC price.

Source: Glass knot

Miner Statistics

The Puell Multiple is an index calculated by dividing the daily Bitcoin output value in US dollars by the 365-day MA of the daily output value.

On June 27th, it returned to the undervalued area. However, he recovered almost immediately afterwards.

The Puell Multiple reached this zone once in June 2020 before the current bull run began.

Interestingly, the mining difficulty level is also close to the June 2020 level.

In addition, long-term BTC holders are constantly expanding their positions, a sign of life in the market.

Source: Glass knot

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