As miners’ income soars, Bitcoin transaction traffic hits a 5-year low Christopher | Capital | July 2021
Bitcoin trading volume reaches a 5-year low
Bitcoin transaction volume is at a historical low. Interest in trading top cryptocurrencies has dropped significantly, and volatility has gradually diminished.
According to Glassnode’s data, the total amount of tokens transferred to and from the exchange address has been stopped.
In other words, both inflows and outflows have stagnated along with the price of Bitcoin. This may be related to the reopening of various economies around the world after more than a year of blockade.
Increase in BTC miners’ income
Generally, the hash rate difficulty function area is used to support arguments for specific deviations in price behavior. Hash inversion has always been a bullish event, but due to the high operating costs of the Chinese authorities on miners, miners may need to sell more treasury bonds-although this will gradually diminish after each halving cycle. So far, the market has absorbed the selling pressure and Bitcoin is trading at more than $34,000 in the same old range.
But there is no darkness without light. It will have a significant impact on the income of the remaining 50% of operating miners (albeit temporarily).
When Bitcoin traded between $50,000 and $60,000 in April, Computing power At its peak, the total income of miners reached US$50 million to US$60 million per day. Although prices have fallen by 54% since then, miners still operating have just witnessed as many as 50% of their competitors shut down in a short period of time.
Therefore, the total daily income is now approximately US$25-30 million per day. However, these revenues are distributed to a small group of miners, and the daily circulation of Bitcoin has remained constant.
Of course, this situation is temporary. Under the same conditions, miners’ income will gradually decrease in the next few weeks, waiting for the broader market to recover.
As the technical situation remains the same, please check Monday’s communication Make a technical summary.
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