The on-chain data provider Glassnode has detailed the current state of the Bitcoin network. According to analysts, it appears to be fundamentally strong, despite price lethargy.
Glassnode he specified the last time on the market as an “impressively quiet week”. The company also confirmed that volatility continued to decline. BTC is still hovering around $ 34,900 and $ 32,500.
It begins to feel like the calm before the storm, as the quiet and calm activity shows up in both spot, derivative and on-chain metrics.
As of this writing, Bitcoin is down 4% overnight to less than $ 33,000. The main coin still remains in the side channel, although the movements get smaller and smaller in amplitude.
Glassnode noticed that the miners’ accumulation was slowly beginning to reestablish itself. The miners’ net change rate is now starting to show a stake build-up again:
This indicates that the pressure from the sellers coming from the offline miners is more than offset by the accumulation from the operational miners.
There has also been an increase in the hash rate. Recently, the hash rate hit its lowest level since August 2019 when it plunged to 68 EH / s. The current hash rate has increased by 32% from these levels to 90 EH / s. This suggests that nearly a third of the power has returned to the grid since the dip.
Glassnode says the increase in hash rate may be due to the fact that miners successfully transferred equipment from China. The second possibility is that previously obsolete equipment has been dusted off and found a new life.
Increase in outflows from stock exchanges
Another indicator supporting the accumulation theory is the stock market outflows, which have increased over the past two weeks. When traders prepare to sell, they transfer Bitcoin to centralized exchanges for conversion to fiat or stablecoins, which happened in April and May.
Glassnode noted that over the past two weeks there has been a positive outflow of BTC from exchanges, at a rate of around 2,000 BTC per day.
The company added that on-chain transaction fees related to exchange deposits decreased while those related to withdrawals increased, concluding:
If this persists as a structural trend, it may strengthen the notion that the pressure from sellers is subsiding.
Long periods of a sideways trend usually result in a large price movement. However, it seems that, according to on-chain data, a major sell-off has already taken place.