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As market pressures from China’s cryptocurrency crackdown begin to ease and Bitcoin’s (BTC) hashrate begins to show signs of recovery, traders are now focusing on how the Price will be affected by this week’s release of more than $ 550 million of Grayscale’s GBTC shares.
Data from Cointelegraph Markets Pro and TradingView shows the downtrend in early morning BTC on July 12 continued into the afternoon as the BTC price fell below the 33,000 support level $ after the bears took control of the market.
The grayscale gained more attention on Monday after various media reported that the company publicly filed three Form 10 registration statements with the United States Securities and Exchange Commission (SEC).
This brings to five the number of trusts publicly reported and managed by Grayscale, with trusts for Bitcoin Cash (BCH), Ethereum Classic (ETC) and Litecoin (LTC) joining previously deposited trusts for Bitcoin and Ether (ETH).
Bitcoin hashrate shows signs of recovery
China’s crackdown on Bitcoin mining resulted in a 55% drop in network hashrate, as BTC mines were shut down across the country and operations moved overseas.
According to a recent report from Glassnode, around 29% of wasted hash power has now come back online thanks to the successful relocation of hardware by Chinese miners, while “previously obsolete hardware has been dusted off and found new life.” .
After nearly a month of selling by miners, the Miner Net Position Change metric now shows that they are back in accumulation mode indicating that “the selling pressure from offline miners is more than offset by the accumulation by operational miners “.
Further evidence of a decrease in sales can be found in exchange flow data for BTC, which has seen a greater amount of BTC withdrawn from exchanges than deposited in the past two weeks.
Due to the increase in outflows, the amount of Bitcoin reserves held on all exchanges fell by over 16,100 BTC between June 28 and July 11.
From a macro perspective, many interpret this as a bullish development for Bitcoin, as token holders appear to be withdrawing BTC for long-term storage as the market waits for the next significant move upward.
Related: Bitcoin Dips Below $ 33,000 As Shorts Rise, Trader Warns Of ‘Violent’ BTC Price Squeeze
Altcoins are under pressure
Altcoins as a whole came under pressure on Monday as the decline in BTC led to weakness in the market.
As the sell intensified in the afternoon, the price of Ether (ETH) fell to the $ 2,000 support level after traders rushed for the exits.
While the majority of the market was in the red for the day, several projects managed to beat the noise and post gains on July 12, with Metal (MTL) achieving an 18% gain while Revain (REV), Stratis ( STRAX) and Injective Protocol (INJ) gain 12%
The overall cryptocurrency market cap is now $ 1.354 trillion and Bitcoin’s dominance rate is 45.5%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.
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