After a small pause, bitcoin today appears to be continuing its upwards trajectory, rising above $9,700.
That’s after a brief local low of $9,200 following a sell-off in precisely five minutes. Something the Nakamotos appear to have shrugged off:
All other cryptos have risen in concert as can be seen, but bitcoin appears to be leading. Ethereum’s ratio has been rising however since the 14th of May, despairing some maxis. There, there.
Why is this rising? Well, maybe all them protesters with their: change the system, buy bitcoin to opt out.
With print baby print at full steam, to maybe be followed by more, more printing to pay for all this destruction, escaping to bitcoin at least for a hedge is perhaps what some Americans are thinking.
And maybe Chinese people too, with the value of CNY falling this year from 6.8 to the dollar to now needing 7.1 yuan for one usd or usdt.
Meaning yuan is devaluating even more than the dollar is devaluating, hence creating some upwards pressure on price.
That upwards pressure might be making bitcoin mining a bit more profitable, hence miners might not need to eat into their savings as much as otherwise.
If they even have any savings left after the March price halving and then the May new supply halving probably led to many of them going under.
As can be seen in the featured image above hash saw a huge drop, but now appears to be recovering especially following a difficulty adjustment just now.
“Bitcoin mining difficulty just dropped -9.29%. It is the fourth downwards adjustment this year and so far the second largest decrease in 2020,” says Glassnode, a blockchain data analytics startup.
With the hash beginning to stabilize, the network’s processing capacity should now start to rise, leading to a fall in fees.
The above shows the amount of bitcoins sent from know miner’s addresses to exchange wallets, with it being just 107 BTC for yesterday, worth about $1 million.
The trend for this year appears to be lower and lower selling by miners, in part perhaps because where May is concerned they have less btc to sell due to the halvening.
Curiously however for this first half of 2020 period, miners sold quite a bit while the price was falling and even at the recent bottom.
We can also see there on the 4th of May the clear price fall after a big sell-off by miners.
There are suggestions that’s what happened this June as well when price plunged in minutes, but we can’t see it above because the data lags by a few days.
Overall however it appears new supply into the market is falling at least where miners are concerned, hence perhaps explaining in part why price is rising.