As Bitcoin loses ground, mining operators worry about what lies next for the industry.
Since May, Bitcoin and other cryptocurrencies have experienced steep losses. But after a while, things began to alter slightly. For instance, bitcoin, which traded above $21K in the morning hours of June 28 after falling to $17K on June 18, recovered to trade between $20K and $21K from June 19 to June 28. Unfortunately, the cryptocurrency was unable to maintain a recovery of over $21K and eventually lost more than $500. The market’s conflicted responses to regulators’ positions on cryptocurrencies led to the fluctuation in Bitcoin price. The head of the SEC, Gary Gensler, claims that regulators classify Bitcoin and other tokens as commodities.
All of these claims were made by the head of the Securities and Exchange Commission during an interview with a media company. Following the interview, many Bitcoin holders started to sell their holdings once more, which decreased the value of Bitcoin. Many investors debated whether to sell after the market crash and price decline or to buy more to expand their portfolio. However, recent data from Glassnode indicates that some Bitcoin owners think now is the ideal time to buy more BTC. Over the weekend, the company tweeted the information, disclosing that over 100 whale addresses are increasing their Bitcoin purchases at this time.
The data indicated that because of the current market panic, these whales purchase these coins at a discount. Glassnode added that the current pattern might continue for a while. The amount of BTC in various wallets is another sign that the whales are interested in purchasing more. Additionally, the addresses that held 10BTC to 10,000BTC contributed extra coins throughout the course of two weeks. Then, since the second month of 2022, wallets with more than 10,000 BTC have increased. To relieve strain, many miners abandoned their tools. According to a strategists’ estimate, public sector miners account for 20% of miners’ sales between May and June. They also suggested that it might be the same for the miners employed by the private sector.