Bitcoin miners now hold 1.856 mn BTC in two-year high, a new data reveals
Miners turn from sellers to hodlers over July as the crypto capitulation phase seems to be over
By Shashank Bhardwaj
The month of July has seen a substantial increase in the holdings of crypto miners as the Bitcoin prices rise and stabilise at a higher stake. This comes after the worst phase of June's market capitulation, with the market rising to 38 percent of what it was at the beginning of June. With a slightly bullish run, the crypto miners are now holding more Bitcoin than they did during the 2020 bull run. The published data suggests that July saw a dramatic decrease in the miners' number of Bitcoin sent to the exchanges.
Earlier in December 2020, Bitcoin hit its all-time low of $17,600 and left miners struggling with their BTC holdings. With the start of August, as the Bitcoin rises to a higher value, the daily average of Bitcoin transfers to exchanges has narrowed to below 1000 BTC. On August 2, the transfer turned out to be drastically low since it was only around 359 BTC being sent by the miners. The total holding as of August 3 was 1,864,842 BTC.
The worst of the capitulation phase showed a gradual loss in the market value, which in turn required higher volumes of Bitcoin. The phase saw Bitcoin transfers from the miners to the exchanges to hold the market from a crash. With the worst decline since 2020, the problems of the crypto market were visible with the low hash rate, declining difficulty and low miner participation. With the ongoing stabilisation, miners now hold more than 1.856M BTC, which is a 0.37 percent increase between the July 6 low and July 29 peak.
Blockchain infrastructure and crypto mining firm Blockware reported on July 29, "Since June 7th, other new generation mining rigs have likely been plugged in by both public and private mining companies. However, enough old generation machines or inefficient overleveraged miners have shut off, that hash rate and difficulty have actually decreased in size."
There still seems to be brighter news since the market is reported to see an increase soon after months of decline. The only thing to be looked out for is the hash rate since Wuestenfeld notes that “hash rate is yet to make a noticeable comeback”. Experts suggest that with these two factors in line, the market may see a bullish uptrend which will thus be good news for the crypto holders.
A substantial rise in the crypto market seems to be the light at the end of the tunnel, not just for the miners but also for other holders.
The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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