Mining pools are accumulating reserves, withdrawals from exchange wallets, and an increase in net unrealized profit in the Bitcoin network as prices rise, signaling a potential FOMO effect. This is the view of Glassnode analysts. FOMO-effect.
The #Bitcoin mining market continues to recover this week, with both hash-rate, and revenue per hash climbing.
We also assess new all-time-highs in capital inflows, and what a surge in profitable supply indicates.
Read our analysis in The Week On-chainhttps://t.co/jj6CzAnKRV
— glassnode (@glassnode) August 16, 2021
According to analysts’ calculations, the net position of miners has been rising over the past two months. Monthly accumulation rates reached 5,000 BTC. In their view, such a situation suggests a reduced probability of sales by this group of market participants.
After the crackdown by Chinese authorities, only owners of equipment providing 12.5% of the hash rate have returned to operation (the peak figure had fallen by 50%). The amount of bitcoins mined per exahash rose from 5.6 BTC to 8.8 BTC.
According to Glassnode, net outflows of coins from Bitcoin exchanges have been observed since the start of July. Monthly outflows range from 50,000 BTC to 100,000 BTC. For comparison: during May–June there was an inflow of 140,000 BTC.
Realized capitalization hit a new high of $379 billion. In light of rising prices, this suggests continued capital inflows that can absorb selling pressure, analysts added.
The net unrealized profit and loss (seven-day moving average) indicator has recently moved into positive territory, fluctuating in the range of $0.5 billion–$1.5 billion. This was preceded by a capitulation of short-term Bitcoin investors in May–July.
The current demand is sufficient to satisfy sales at a level seen in November–December 2020 at the outset of the move toward a historical high. Analysts are convinced that continued capital inflows at the current level will lay the groundwork for further Bitcoin growth.
The NUPL indicator with a moving-coin filter for the last five months has also moved into positive territory. Analysts note that such a development has previously preceded a sharp rise in volatility.
In April, Bloomberg Intelligence senior commodity strategist Mike McGlone forecasted Bitcoin to rise to the $100,000 mark.
Earlier, Crypto Mentors founder Nikita Semov identified a target for Bitcoin’s move after breaking the $50,000 level.
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