Hi HODLers and Hiveans,
Tough times for CryptoMarkets but we have to stay optimistic as new protocols and dapps are being developped as we speak!
Miners have changed their behavior related to how much of their newly mined Bitcoin they sell.
In the first four months of 2022, public BTC mining firms sold 30% of their mined production, which increased 3X folds in May and is expected to rise even further in June.
When the price of Bitcoin hit $21,000; the BTC miner’s to exchange flow ratio has hit a new 7-month high!
Watch out for the Bitcoin Hash ribbon
Bitcoin Hash Ribbon, an indicator that tries to identify periods where BTC miners are in distress and may be capitulating, has crossed, indicating many miners are unplugging their machines due to lack of profitability.
How is calculate the hash ribbon? You take the 30-day and 60-day moving average of the Bitcoin hash rate, which is used to determine when sufficient miner capitulation has occurred.
Many Bitcoin researchers and traders seem to think this is a strong bottom signal. I would not go as far as we have still more pain to come on the economic front. I believe we are still going to have a few very difficult months before it might get better.
Until then... Stay safe out there,