TL; DR Breakdown
- Bitcoin hash rate reaches all-time high
- The mining hash rate touches 183 Exahash
- Short term Bitcoin holders are selling off their assets
The Bitcoin sector was brought to a slight standstill after China announced a ban on crypto-related activities across the country. Although the effect was not felt at first, the entire global hash rate reacted to the news after a massive decline of about 54% in May last year. However, the crypto mining sector has recovered over that time to post a jump of 117% since July.
Bitcoin’s hash rate touches 183 Exahash
Putting the recent jump into context, Bitcoin’s hash rate has jumped to a new all-time high, touching close to 183 Exahash. The report by popular analysis firm, Glassnode, mentioned that mining rigs were now back in operation. This is the main reason why the crypto hash rate could go from 54% down in May 2021 to a new all-time high.
One of the major reactions this has caused was the push in the leading digital asset’s price across 2021. With the network seeing massive amounts of activities, the bulls would be waiting to push the asset’s price further up. The token is presently trading around $42,000, with the digital asset seeing little or no movement in the last few days. With this, the digital asset has seen just a 1% jump in the last seven days.
Short term holders are selling off their Bitcoin
The Bitcoin network has witnessed a lot of activities over the last few months. Short-term holders are now selling off more of the digital asset. This is buttressed by a recent figure which places their total held coin across exchanges at 3 million. In the Glassnode report, analysts mentioned that about 40% of the token’s volume had recorded profits. According to Glassnode, the last time this event occurred was August 2020. However, the co-founders of the analysis firmly believe that traders are holding on to their profits for the next available investment opportunity.