Bitcoin is not getting anywhere. This is ensured by dip buyers who take their profits with them. However, the course is being supported by miners who are holding on to their reserves. And the crypto reserve currency is also making great strides at the level of acceptance.
Sales still dominate the day-to-day events in the crypto market. The total market capitalization pushes down 2.6 percent in a 24-hour comparison and thus only holds just over 1.6 trillion US dollars. The Bitcoin price narrowly missed the jump to the 39,000 mark yesterday, but after falling back to 36,000 US dollars, it still posted a small plus of 0.8 percent. At the time of going to press, BTC is trading at $ 36,974, down 5 percent for the week.
The altcoins continue to fall behind on a daily basis. Ethereum (ETH) slipped 2.7 percent, just below 2,500 US dollars, while the Binance Coin (BNB) fell 1.4 percent to 360 US dollars. With Cardano (ADA), Dogecoin (DOGE) and Polkadot (DOT) the losses level off at three percent each. XRP is dropping two percent, while Uniswap (UNI) is today’s loser among the ten largest cryptocurrencies at a discount of 4.5 percent.
Bitcoin dominance is catching up
The fact that Bitcoin can make up a little more ground compared to the Altcoins is reflected in the dominance of the crypto reserve currency, which has been increasing for several days. On May 18, Bitcoin’s share of total market capitalization fell to a three-year low of just under 40 percent. With currently 44 percent, Bitcoin has at least partially regained its dominance. Even if it is premature to speak of a trend reversal, the crypto top dog is gradually moving back into the focus of crypto investors: inside.
Bitcoin hash rate drops
Meanwhile, the hash rate is heading in the opposite direction. Since the record high of 180 EH / s in mid-May, the hash rate has lost around 20 percent. With currently 144 EH / s, it has gambled away the entire 2021 lead and is back at the level of the beginning of the year. In view of the worsening situation for Chinese miners, the hash rate is likely to remain in correction mode in the coming weeks.
Dip buyers take profits
Even if the wave of sales is gradually subsiding, the Bitcoin price is not immune to major corrections either. Selling pressure comes loud Glass node currently from investors who struck in the most recent crash. The Spent Output Profit Ratio (SOPR), a metric that divides the realized value, i.e. the sales price, by the purchase price, shows that “dip buyers also take profits”.
Miners keep their feet still
In contrast, the miners have what it takes. The von has been moving since March CryptoQuant determined Miners Position Index (MPI) just below zero. This value indicates that the majority of miners are not selling their BTC – despite corrections and regulatory headwinds. At least there is no pressure to sell on the market from the miners’ group.
On the adoption side, too, the signs for Bitcoin are currently pointing to growth. It was only on Wednesday that El Salvador announced that it wanted to introduce the cryptocurrency as legal tender. There should be similar efforts in Paraguay as well. In addition, Twitter CEO Jack Dorsey indicated today that Bitcoin would be integrated into Twitter or the decentralized social media project Bluesky via the Lightning Network. In response to a request from a user wrote Dorseythat this step is only a matter of time.