- BitcoinÂ has dropped over the past few days after news revealed that OKEx had frozen withdrawals.
- The price of the leading cryptocurrency slipped from $11,750 to $11,450 where it is now.
- The leading cryptocurrency is primed to appreciate in the long run despite short-term weakness.
- One crypto-asset analyst noted that there is a confluence of on-chain trends showing Bitcoin is bullish.
- Four of those metrics are as follows.
BITCOINâ€™S ON-CHAIN TRENDS ARE BULLISH, DATA SHOWS
Citing data from blockchain analytics firm CryptoQuant, a crypto-asset analyst thinks that Bitcoin remains in a macro bull trend. He recently shared a confluence of on-chain trends showing why this is the case. Four of these trends are as follows:
- The â€œexchange whale ratio,â€ which tracks how much Bitcoin large holders have deposited on exchanges, is currently low. This metric is the lowest it has been since the 2018 lows, suggesting that there is minimal selling pressure from large holders.
- The amount of BTC that miners are sending to exchanges is currently at its lowest point since March 2017. This suggests that on-balance, miners think that Bitcoin will appreciate and thus arenâ€™t hedging their holdings by selling coins.
- Simultaneously, miner reserves have been dropping rapidly, suggesting they have little â€œammo to dump.â€ It may be that Bitcoin miners are making over-the-counter deals, which is corroborated by the large number of high-profile Bitcoin accumulation announcements.
- Finally, the market capitalization of stablecoins has exploded higher over recent months. This suggests that there is money on the sidelines to purchase Bitcoin and other crypto assets.
HASH RATE UNDERLIES BULL TREND
Corroborating the bullish sentiment shared by the analyst above, the Bitcoin hash rate has continued to trek higher.
BitInfo Charts, a leading data provider in the crypto space, reported that on October 15th, the hash rate of the Bitcoin network set a new all-time high above 157 exahashes per second. This is up many dozens of percent since the start of 2020, cementing the bullish sentiment of miners.
Crucial to this hash rate growth is increased investment in the digital asset mining space.
AnnouncedÂ on October 13th, cryptocurrency mining firm Marathon Patent Group has formed a partnership with an energy company to launch a Bitcoin mining farm. This farm will be set up near a plant of its partner, Beowulf, where electricity can be obtained at a rate of $0.028/kWh.
This new farm will support upwards of 0,000 S19 Pro Antminers, which can generate 3.320 exahashes per second in aggregate. 3.32 exahashes per second is around 2-2.5% of the total hash rate of the network on any given day.