Today, Bitcoin recorded its biggest upward adjustment of +15% since January 2018. The last two adjustments were lower by -9.29% and -6%, after the halving, as per Coinwarz.
After the halving on May 11th, the hash rate dropped more than 40% and the time to find new blocks jumped to 14 minutes which caused the difficulty to lower.
However, in the first week of June, the hash rate of the bitcoin network started recovering following the downward difficulty adjustment and the block time fell to nearly 7 minutes, as per Bitinfocharts.
Now, with new bitcoin mining machines in the market, China’s rainy season at its peak, and inefficient miners having exit the market, this difficulty adjustment will make it harder to mine bitcoin.
Bitcoin Back into Greens
Price-wise Bitcoin is back in the range.
On Monday, Bitcoin fell amidst a renewal in global risk aversion induced by the growing number of coronavirus cases, with China now working to contain a new outbreak and Chinese economic data disappointing investors.
“The digital currency market is not immune when it comes to flight for cash, as evidenced during the February/March selloff,” said Denis Vinokourov, head of research at Bequant, a London-based digital asset prime broker. “With liquidity sapped away, the unwind resulted in a cascade of exits.”
Yesterday, the digital asset bounced off of the lows on the back of central banks’ dovish tone. And today, we are back to trading above $9,500 with 3.76% gains but with just $1.8 billion in real volume.
According to technical gauges, the short-term bottom has been found at $8,900 with upper support present at $10,000 and is expected to sustain its rally since March.
Investors Busy HODLing
Interestingly, more than 60% of bitcoin’s supply has been inactive for at least 1 year now.
This means crypto investors are not taking profits rather choosing to hold onto their BTC which is up 150% since its March lows in the current uncertain economic scenario.
The last time this much percentage of bitcoin supply was inactive was four years back in 2016.
Meanwhile, “HODL Waves,” where each wave represents the period of time in which a percentage of BTC’s issues supply has been inactive, shows that those holding the coins for more than ten years are up 31% and those holding it for two to three years are also up 26%.
Those holding it for a decade, however, might also include those who have lost their coins.
These hodling trends only emphasize investors’ bullish outlook of bitcoin’s future. Also, the smart money moving from weak hands to strong hands as macro trends highlights the value proposition of bitcoin.
Also, “the overall network health remains strong” and the Glassnode compass has solidified its position in the green zone.
Moreover, the bitcoin whale population is growing, now 1882 entities are holding at least 1000 BTC. The last time, this figure was so high was in September 2017 as BTC made its way to $20,000.
Interestingly, the first time these many BTC whales were seen was in March 2016. However, the average balance held by each whale has decreased during the period.