As Bitcoin continued to consolidate below $ 40,000, the market saw some strong negative moves. Compared to last week, Bitcoin investors have gradually pulled out of the market this week. The reason could be the large mining migration and FUD. But as retail investors begin to exit the BTC market, another segment of the community appears to be making a comeback.

Bitcoin miner back?

This appears to be the case as some early signs suggest that the hashrate is recovering this week. According to on-chain metrics, 29% of hash power (formerly offline) is back online. This is pretty good news for investors because after the previous 55% drop in hashrate, concerns that miners are giving up Bitcoin are more prominent in the market. One of the reasons for this change is that Chinese miners have moved elsewhere.

Hash rate goes down | Source: Glassnode

In addition, these miners have seen increased profits so that they have accumulated bitcoin. After a long period of strong distribution, last month, the miner’s net position turned back to accumulation.

Miners begin to pile up | Source: Glassnode

Outflow dominates on the stock exchanges

Although outflows dominated almost all of the second half of 2020 along with the first quarter of 2021, May saw more inflows as Bitcoin price hit ATH. Then the crash caused the drains to dominate again.

Transfer volume resign Net of Bitcoin entering / leaving the exchange | Source: Glassnode

As evidence of this statement, the withdrawal fees are leading in the exchange’s deposit / withdrawal fee table. Exchange deposit fees decreased 3% to 14%, while withdrawal fees increased 43% to 5.4%.

Dominance rate of fees take off Bitcoin increase strong | Source: Glassnode

Dominance rate of pSend Bitcoin in descending order | Source: Glassnode

Finally, the entire Bitcoin balance on the exchanges also saw a significant decline. The exchanges analyzed held a total of around 2.6 million BTC, while the price fell to ATH in May; at the time of going to press, that number had fallen by 40,000 BTC to 2.56 million.

Bitcoin balance on the exchanges | Source: Glassnode

Minh Anh

According to AMBCrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page