Bitcoin

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James

<ul>
 <li>After a dip, BTC’s hashrate gained upward momentum and recovered.&nbsp;</li>
 <li style="font-weight: 400;">BTC was down by over 2% in the last seven days while selling pressure increased.&nbsp;</li>
</ul>
<a href="https://ambcrypto.com/search/bitcoin" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Bitcoin [BTC]</a> witnessed a sharp drop in a key mining metric that suggested a decline in the industry. Not only that, but miners seemed to have been selling their assets. 
Does this mean that they have lost faith in BTC while it awaits its upcoming halving in 2024?
<h4>Is Bitcoin’s mining industry declining?</h4>
As we are entering the new year, Bitcoin witnessed a massive drop in its key mining metric. To be precise, BTC’s hashrate sank sharply on the 29th of December. A drop in the metric generally means an outflow of miners from the ecosystem. 
Apart from that, another key metric that sank in the recent past is BTC’s miners’ balance, as evident from Glassnode’s data.
<div id="attachment_361494" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-361494" decoding="async" class="wp-image-361494 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners.png" alt="" width="1800" height="1013" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners.png 1800w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners-300x169.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners-1024x576.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners-768x432.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/glassnode-studio_bitcoin-balance-in-miner-wallets-btc-all-miners-1536x864.png 1536w" sizes="(max-width: 1800px) 100vw, 1800px"></a>
 Source: Glassnode
</div>
At first glance, this might look disastrous for Bitcoin, as it is expecting its next halving in just a few months. However, upon closer inspection, a different story was revealed. 
James Van Straten recently posted a tweet highlighting the aforementioned data. 
But he also revealed that the drop in miners’ balance did not mean that the miners were selling their assets. This was the case, as there were barely any Bitcoins sent to exchanges, meaning that the episode happened because of wallet re-shuffling.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Slightly concerned about the declining hash rate and <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#Bitcoin</a> miner balance, which is dropping quite extensively.
 The mining pools that are reducing the balance are MaraPool, F2Pool, and Poolin, by about 13k BTC in the past few weeks.
 This doesn't mean they have sold; in… <a href="https://t.co/Pq6iIt2teD" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/Pq6iIt2teD</a>
 — James Van Straten (@jimmyvs24) <a href="https://twitter.com/jimmyvs24/status/1740757125926658206?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">December 29, 2023</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
In fact, upon further digging, AMBCrypto found that after the massive drop on the 29th of December, the blockchain’s hashrate climbed up pretty quickly as it recovered. 
As per <a href="https://www.coinwarz.com/mining/bitcoin/hashrate-chart" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">Coinwarz</a>, at the time of writing, <a href="https://ambcrypto.com/will-ethereum-outshine-bitcoin-in-2024/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">BTC</a> had a hashrate of 695.09 EH.
<div id="attachment_361495" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Coinwarz-BTC.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-361495" decoding="async" class="wp-image-361495 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Coinwarz-BTC.png" alt="" width="1242" height="470" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/Coinwarz-BTC.png 1242w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Coinwarz-BTC-300x114.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Coinwarz-BTC-1024x388.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/Coinwarz-BTC-768x291.png 768w" sizes="(max-width: 1242px) 100vw, 1242px"></a>
 Source: Coinwarz
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Since the metric was recovered, AMBCrypto double-checked other datasets to understand how miners are behaving. 
As per our analysis of CryptoQuant’s <a href="https://cryptoquant.com/asset/btc/summary" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">data</a>, Bitcoin’s Miners’ Position Index (MPI) was yellow, meaning that miners were selling holdings in a moderate range compared to its one-year average. 
Additionally, its Puell Multiple was also in the same position, which meant that miners’ revenue was in a moderate range compared to its one-year average.
<div id="attachment_361496" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-BTC-2-2.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-361496" decoding="async" class="wp-image-361496 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-BTC-2-2.png" alt="" width="1331" height="397" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-BTC-2-2.png 1331w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-BTC-2-2-300x89.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-BTC-2-2-1024x305.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-BTC-2-2-768x229.png 768w" sizes="(max-width: 1331px) 100vw, 1331px"></a>
 Source: CryptoQuant
</div>
<h4>How BTC might end 2023</h4>
While BTC’s mining industry recovered, its price action turned bullish. As per <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">CoinMarketCap</a>, Bitcoin was down by more than 2% in the last seven days. 
At the time of writing, it was trading at $42,456.46 with a market capitalization of over $831 billion.
Read <a href="https://ambcrypto.com/predictions/bitcoin-price-prediction" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Bitcoin’s [BTC] Price Prediction</a> 2023-24
A reason behind the price downtrend could be the hike in selling pressure, and BTC’s exchange net deposit on exchanges was high compared to the last seven-day average. 
Nonetheless, long-term holders had immense faith in <a href="https://ambcrypto.com/will-bitcoins-move-to-50k-cause-a-40-correction/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">BTC,</a> as its Binary CDD was green. This meant that the long-term holders’ movement in the last seven days was lower than average.
<div id="attachment_361497" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-BTC-3.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-361497" decoding="async" class="wp-image-361497 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-BTC-3.png" alt="" width="693" height="412" srcset="https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-BTC-3.png 693w, https://statics.ambcrypto.com/wp-content/uploads/2023/12/CryptoQuant-BTC-3-300x178.png 300w" sizes="(max-width: 693px) 100vw, 693px"></a>
 Source: CryptoQuant
</div>

Is Bitcoin’s mining industry collapsing?

AMBCrypto

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