The recent protests in Kazakhstan seemed to be the straw that broke the camel’s back – or was it? It looks like things could be looking up for crypto holders as the market sees the highest BTC hash rate, a strong indicator of positive growth in the sector.
The BTC mining rate, one of the most important indicators of Bitcoin’s network activity, has witnessed a jump of more than 100% in the last six months. Glassnode’s data shows that BTC’s mean hash rate has touched a new all-time high of 183 Exahash.
Last year, China launched a crackdown on crypto mining in the region and introduce a complete ban on mining activities in the country. Due to China’s dominance in the global crypto mining ecosystem, the hash rate plunged by more than 54% in May 2021.
An astonishing jump of almost 117% since July 2021 has highlighted a sooner-than-expected recovery in the crypto mining sector. “BTC Hash Rate has reached 183 Exahash, a new all-time high. After a -54% reduction in May last year, resulting from a ban in China, mining rigs have returned to operation, growing network security by +117% since July 2021,” Glassnode noted.
Bitcoin’s growing network supported BTC’s price jump in 2021. While the network activity has surged again, Bitcoin bulls are waiting for a substantial price spike. The crypto asset is currently struggling near $42,000. BTC’s price action remained almost flat in the last 7 days, which is up by nearly 1% in the past week.
Short-Term BTC Holders
The BTC network has seen an interesting development in the last few months. Short-term holders of the digital asset now own 3 million coins, which is the lowest level since August 2020. Almost 40% of BTC transfer volume is currently in profit. “Short-Term Holders, investors who bought their coins within the past few months, currently hold 3 million BTC. This is a historically low level, and one that hasn’t been seen since August 2020,” Glassnode added.
“Low ST Holder Supply in Profit combined with a low Stablecoin Supply Ratio indicates lots of sideline money waiting to be reinvested into Bitcoin,” Yann and Jan, the Co-Founders of Glassnode, noted.