Various data indicate that crypto mining firms are settling at their new locations following aggressive action on them by the Chinese authorities in May.
Institutions Remain Bullish
Glassnode analytics suggest that institutions might be responsible for bitcoin’s current bullish run. “Institutional investors continue to dominate transaction volumes which are impacting BTC’s price action positively,” Glassnode further stated
Glassnode’s weekly industry report remarked that BTC miners are starting to take profits in the last seven days despite a recovery in hash rate. You’d recall that China’s aggressive action on crypto miners began in June, which hampered the bitcoin hash rate. But recent data showed that at least 50% of the lost hash rate had been recovered.
Consequently, their gains are back to about $390K per Exahash. As BTC surged past the $50K range, some miners started selling their holdings to raise cash and maintain the smooth running of their businesses. However, their selling pressure hasn’t caused a decline in BTC price yet.
BTC Movement According To Age
The analytic firm’s report also noted that most of the BTC transactions recently recorded are from traders and not long-term holders. An indication that they are still convinced that BTC is yet to peak. Thus, their illiquidity is making the BTC market bullish.
The report also stated that despite BTC’s bullish run, those with a BTC portfolio older than a year are not selling. Today’s Asian session shows that the bitcoin price rose to a little short of $53k. However, the flash crash that happened in the afternoon session resulted in the BTC price trading in the mid-$40K range.
BTC’s Average USD Transaction Size
The transaction size is one of the critical determinants of BTC’s performance and activity. Since January 2021, the bitcoin transaction size has risen dramatically. Before this year, BTC’s average transaction size was usually about $7k, mainly because most investors were retailers.
But this year, several institutional investors have been investing in the space. Hence, the average transaction size peaked at almost $59K in May. Despite the market correction, which didn’t stop until late July, BTC’s average transaction remained $33K. Compared to pre-2021 data, the average transaction size during the market correction still showed an increase of about 380%.
Crypto Market Recovers $2.13 Tr Within Two Hours
CoinMarketCap data reveal that the entire crypto market has recovered $175B of the $340B lost during the flash crash which happened during today’s afternoon session. The crash amused everyone because market sentiment was bullish following el Salvador’s historical event of adopting bitcoin as a legal tender.
Before today’s crash, the entire crypto space has been bullish for more than seven days. Consequently, the overall market cap rose by 16% in the last week alone. Some analysts opined that the market is reacting to speculations of increased BTC purchases before today’s official adoption in El Salvador.
That assertion seemed strange given that the BTC price has been rallying before today for the same reason. Despite shedding $6K today, other analysts predict that the king coin is still bullish so long it doesn’t decline below the $44K price range.