Signs of BTC accumulation appear when the network’s hash rate increases and currency outflows increase in July.
With the pressures on the market from China’s crackdown on cryptocurrency easing and Bitcoin’s (BTC) hashrate showing signs of recovery, traders are now focusing on how the price was released by releasing more than $ 550 million -Dollar this week will affect GBTC stocks from Grayscale.
Data from Cointelegraph Markets Pro and TradingView show that the downtrend in BTC lasted early morning on July 12th into the afternoon when BTC’s price fell below the $ 33,000 support level after bears took control of the market .
BTC / USDT 4-hour chart. Source: TradingView
Grayscale attracted further attention on Monday after various media outlets reported that the company filed three Form 10 registrations with the SEC.
This increases the number of publicly reported trusts that Grayscale manages to five, adding the trusts for Bitcoin Cash (BCH), Ethereum Classic (ETC) and Litecoin (LTC) to the previously submitted trusts for Bitcoin and Ether (ETH) .
Bitcoin hashrate is showing signs of recovery
China’s crackdown on Bitcoin mining resulted in a 55% drop in network hash rate as BTC mines across the country closed and operations relocated overseas.
According to a recent report from Glassnode, around 29% of lost hash power is now back online as Chinese miners successfully move hardware while “previously obsolete hardware has been dusted and brought back to life”.
Bitcoin medium hash rate. Source: Glassnode
After almost a month of selling miners, the Miner Net Position Change metric now shows that they are back in accumulation mode, indicating that “the sales-side pressure from offline miners is increasing due to accumulation by operational miners than is balanced ”.
Further evidence of a decline in sales can be found in the exchange flow data for BTC, where more BTC has been withdrawn from exchanges than has been deposited in the past two weeks.
Bitcoin all exchanges Netflow. Source: CryptoQuant
As a result of the increased outflows, the amount of Bitcoin reserves held across all exchanges decreased by more than 16,100 BTC between June 28 and July 11.
Bitcoin all foreign exchange reserves. Source: CryptoQuant
From a macro perspective, many interpret this as a bullish move for Bitcoin, as token holders seem to be pulling BTC back to store it for the long term while the market waits for the next significant surge.
Altcoins are coming under pressure
Altcoins overall came under pressure on Monday as BTC’s retreat caused the overall market to weak.
Daily performance of the cryptocurrency market. Source: Coin360
As the sell-off intensified by the afternoon, the price of Ether (ETH) fell to the $ 2,000 support level after traders rushed to the exits.
While most of the market was in the red that day, there were several projects that managed to get above the noise and made gains on July 12, with Metal (MTL) gaining 18% while Revain ( REV) Stratis (STRAX) and Injective Protocol (INJ) gained 12%
The total market cap for cryptocurrencies is now $ 1.354 trillion and the dominance rate of Bitcoin is 45.5%.