Summer, sun – only the Satoshis are missing. Bitcoin has been hitting the brakes since the yearly high of $31,276 set on July 3. At the time of writing, BTC is trading at $30,200 and is down 1.3 percent on the week to date.
Is the bull market taking a summer break?
Bitcoin hash rate on record hunt
If you take a look under the hood, you can say: Probably not.
After all, the miners don’t seem to care about the sideways trend in Bitcoin. At 377 exahashes per second (EH/s), the industry is hot on the heels of the mining all-time high of around 380 EH/s. So more than ever, you are vying for valuable coins before the mining reward is halved again in April 2024.
Most recently, the hash rate had fallen slightly because heat waves in Texas had increased the demand for electricity in other sectors and the miners consequently took part of their ASIC fleet offline. Most of the devices are now online again.
Do you want to buy cryptocurrencies?
Consequently, the Bitcoin Difficulty Estimator shows an upward correction of 7.3 percent for the next adjustment of the mining difficulty. The next difficulty adjustment will take place on Wednesday, July 12th.
Bitcoin: what’s next?
Everything is fine with Bitcoin from a valuation perspective as well. The mother of cryptocurrencies is still rated relatively moderately with an MVRV-Z-Score of 0.7.
Let’s remember: the MVRV compares the market capitalization with the realized market capitalization, i.e. the price at which the respective coin was last moved. The metric paints a more accurate picture of the actual value stored in Bitcoin and provides an indication of whether the majority of hodlers are above or below the waterline.
The digital gold is visibly far away from the red – and thus overvalued – area.
Whales withdraw from the market
One explanation for the low volatility in the market is declining Bitcoin whale activity. Whales are traders with BTC holdings in excess of 1,000 coins. They sometimes have a significant influence on the course of the course.
As data from CryptoQuant shows, the proportion of coins deposited by whales on exchanges is comparatively small. In other words, the whales have retreated to deeper waters and are now watching the market from the sidelines.
If the whales push their money back onto the exchanges, the message is: watch out. Because then the BTC course should follow suit.
The latest issues of BTC-ECHO Magazine
You might also be interested in this