The “519 crash” threw cold water on the hot crypto market as bitcoin’s network-wide computing power fell under strong regulatory policies. Bitcoin has been on a dramatic price curve since March 2020, and despite the sharp downturn in the last month, the crypto market is on ice and on fire with the emergence of new bitcoin activity and the recognition of the bitcoin consensus in small countries.
The hot crypto market has seen a sharp cooling wave amid the 519 plunge and strong regulatory policies.
The latest data from CoinDesk Research shows that an average of $34.8 billion of bitcoin changed hands every day for the first eight days of June, compared to last month’s chart of an unprecedented $67 billion. So far, June’s average is the lowest month since December.
According to a recent Glassnode Insights report, ethereum transfers in U.S. dollars fell 60 percent in two weeks. deFi transaction volume and number of transactions have declined this month. Transaction fees are back below $5 for the first time since Jan. 1. Ether DeFi activity has slowed to 2020 levels.
In addition, under the background of the State Council’s mention of crackdown on bitcoin mining, various places have issued relevant policies to rectify and clean up virtual currency mining. On June 9, the Development and Reform Commission of Xinjiang Changji Hui Autonomous Prefecture issued a report on the immediate suppression of virtual currency mining. and Reform Commission issued a notice on the immediate shutdown and rectification of virtual currency mining enterprises, requiring the management committee of Xinjiang Jundong Development Zone to immediately order all enterprises engaged in virtual currency mining to stop production and rectify by 14:00 on June 9, and report the relevant shutdown and rectification situation to the Development and Reform Commission. On the same day, the Qinghai Provincial Department of Industry and Information Technology issued a notice on the complete shutdown of virtual currency “mining” projects, requiring all regions to carry out cleanup and rectification of the virtual currency “mining” behavior.
On June 10, the data of Spider Mining Pool showed that BTC has 144.539EH/s, 21.05T mining difficulty, 687001 block height and 0.00000620/T/day theoretical gain. 12604022, theoretical gain 0.00264959/100MH/day.
In addition, at the U.S. Senate hearing on central bank digital currencies, U.S. senators called on lawmakers to confront the cryptocurrency issue head-on and that cryptocurrencies need more regulation.
Giant whale bullishness?
Despite the mostly bearish news on the market and policy front, data shows that bitcoin giant whales have been buying bitcoin since the price fell below the $40,000 mark last month, accumulating nearly $2 billion so far.
According to cryptocurrency analytics firm Santiment, bitcoin whales with 100 to 10,000 BTC in their wallets began adding to their holdings after the price of BTC hit $37,000, bringing the price back up to $39,000. Santiment also noted that as the BTC whales continued to add to their holdings, retail investors sold their bitcoin holdings at low prices. According to the firm, whale addresses with more than 1,000 BTC now hold more than 7.88 million BTC, the largest number held since March 14. In contrast, addresses holding less than 10 BTC hold only 2.65 million BTC, the smallest amount in the past six months, in contrast to the whale’s buying.
In addition, the data shows that ETH’s NVT ratio is currently trending higher over the past few days, but its average remains at a low level. The low NVT ratio indicates that ETH’s network is currently undervalued, which means that market capitalization is more likely to appreciate than decline.
In addition to on-chain metrics, Bitcoin’s consensus appears to be gradually expanding. After El Salvador approved Bitcoin as legal tender, Panamanian congressman Gabriel Silva also said he is working on a proposal to include Bitcoin and other cryptocurrencies within the country’s legal tender. While it remains to be seen how other countries will follow suit, Bitcoin is gaining more attention and discussion from many more parties.
Millionaire investor Kevin O’Leary recently allocated 3% of his portfolio to BTC and said he has no plans to sell his BTC anytime soon. Kevin O’Leary also noted that 2021 is a critical year for Bitcoin as more institutions look to enter the space, but concerns about energy consumption will keep him cautious.
As an update, bitcoin is starting to look for more upside, driven by the earlier Basel news. However, on a macro level, the market wants to rebound quickly and rebuilding investment confidence is key, and the Fed’s interest rate resolution and subsequent U.S. inflation data is either an important basis for the market’s next directional choice.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/crypto-ice-and-fire-trading-volume-falls-to-lowest-level-in-2021-giant-whales-continue-to-hoard-btc/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.