Bitcoin Price & Mining Profitability Jumps Back Up while HODLers Showing 2015-Level Conviction

Must Read

Bitcoin Sees an Influx of Retail Interest with Investors Doubling Down on HODLing

After tumbling down to below $6,500 yet again, Bitcoin went back above $7,000 in...

Grayscale Reports Q1 2020 Quarter, Hedge Funds Buying Bitcoin Dips

The Q1 2020 was all about significant volatility after we started a new year...

Wyoming Amends Insurance Code to Allow Insurance Companies to Invest in Bitcoin & other Cryptos

In the first provision of its kind, Wyoming is allowing the domestic insurers to invest...
- Advertisement Banner
Earn Free Bitcoin

So, today everything is surging.

From the stock markets, silver, gold, oil, to digital assets, everything is doing well. The world’s leading cryptocurrency jumped over 14% in the past 24 hours and then went as high as $7,235.

The point of resistance for BTC is now at $7,000.

Altcoins followed Bitcoin and jumped but the flagship cryptocurrency remained the biggest gainer. The total market capitalization added more than $20 million today.

As the Bitcoin price recovered 87% from mid-March low, Bitcoin mining profitability also made a comeback. After the mining difficulty had its second-largest drop in history, the mining profitability turned positive this week.

After falling to its lowest level to 0.069 in line with the price, Bitcoin mining profitability went back above 0.1.

The spike in price and profitability is a sign of a shift in the market.

Interestingly, 15% (2.74 million) of the available Bitcoin are now sitting idle for 2-3 years with the price around $6,300. The last time we saw HODL Wave age band represented 15% (2.25 million) of available BTC was in November 2015. At that time, the price of bitcoin was at $345.

According to Adamant Capital’s Tuur Demeester, this development is “bullish” because Bitcoin “hodlers are showing conviction, just like in 2015.”

Bitcoin UTXO Age Distribution

Another positive shift in sentiment came in the form of the Bitcoin network jumping 45.11% compared to the previous week.

“In the weeks after BTC’s price drop, most (of the On–chain metrics) have bounced out of or sit in zones that have historically signalled bottoms and good entry points,” noted crypto data provider Glassnode.

The average size of Bitcoin exchange deposits has been already increasing “dramatically” though still extremely low in comparison to historic levels.

Meanwhile, Darknet markets react to price drop “like never before”

The violent sell-off in March was “no ordinary” as per the drastic changes seen in the usage patterns of different types of crypto businesses.

As COVID-19 pandemic intensified during the week of March 19, in line with the price crash, darknet market activity took a hit unlike ever before and their correlation reversed, as per Chainalysis.

Bitcoin price dropped in mid-March to $3,850 from the 2020 high of $10,500 in mid-February. This decline in price led to a drop in the value of Bitcoins sent to the darknet market, from $4.1 million to $3.2 million.

This could be because of a lull in drug purchases because of the public health crisis and disruptions in the global supply chain.

However, the darknet purchasing appears to be picking back up as China recovers from its COVID-19 outbreak.

Meanwhile, merchant services remained “surprisingly resilient” despite being typically highly correlated with price. Gambling services also dropped but it was unrelated to the price crash as it has been found gambling activity changes during the recession.

- Advertisement -
- Advertisement -

Latest News

Wyoming Amends Insurance Code to Allow Insurance Companies to Invest in Bitcoin & other Cryptos

In the first provision of its kind, Wyoming is allowing the domestic insurers to invest...
- Advertisement -Earn Free Bitcoin

Its’ Finally Here A 100% Local Non-Custodial P2P Cryptocurrency Marketplace.

Finfreeotc is soon launching a one of a kind peer to peer cryptocurrency market place. Their marketplace is 100% non-custodial,...

WorldMarkets continues with the success of its trading artificial intelligence

Today we live in the information age, and access to information is unlimited. And that produces the paradox of misinformation. That's why... Records Growth for The First Blockchain ​​Web Tv Platform Dedicated to Sport Clubs And Athletes

Sophia Antipolis (France) and Singapore: The first web TV platform dedicated to sports clubs and athletes opened in...

Crypto-Broker Instacoins Receives Operating License in Estonia

Instacoins Estonia OÜ, a cryptocurrency brokerage, is pleased to announce it has received an operating license from the Estonian Financial Intelligence Unit (FIU). The...