The Bitcoin mining industry is currently going through a historic migration due to the latest crackdown by the Chinese authorities in the region. In June 2021, the mean hash rate dropped by nearly 55% from its peak of May 2021. However, the latest weekly on-chain analysis report published by Glassnode highlights that the Bitcoin mining industry is showing signs of a strong recovery.
According to Glassnode, Bitcoin’s current mean hash rate is now down by 39% from its peak of May 2021. Additionally, Bitcoin Miner Net Position Change (BMNPC) metric has returned to accumulation for the first time in nearly 5 weeks. Last week, Glassnode highlighted that the operational Bitcoin miners saw a jump in profitability despite the recent challenges in the market.
“This week, the Bitcoin hash-rate has recovered from the peak-trough decline of 55% to around a 39% decline. Should this level hold and be representative, it would indicate that hash-power equivalent to around 29% of the affected hash-power has come back online. This could be due to two major reasons. Firstly, miners in China have successfully relocated hardware. Secondly, previously obsolete hardware has been dusted off and found a new lease on life,” Glassnode mentioned in the weekly report.
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Bitcoin Balance on Exchanges
Large Bitcoin wallets moved the world’s largest cryptocurrency from the leading digital exchanges in substantial amounts during the last few weeks. In the first week of July, two crypto wallets transferred a total of 7,062 BTC from digital exchange Coinbase. In the latest report, Glassnode highlighted a jump in outflows from leading cryptocurrency exchanges. “Last on exchanges, the aggregate balance has fallen by around 40k BTC over the past three weeks. This represents approximately 28% of the total inflow of 140k BTC observed since the local low set in April. Exchange balances we track are currently holding 2.56M coins,” Glassnode added.
Large Bitcoin addresses holding between 100 and 10,000 BTC now have more than 9.13 million coins.