By Shelly Melancon (Switzerland)
Bitcoin is now trading above the $35k region. A major factor causing the price pump is attributable to a recent and single big buy of 60k BTC. According to reports, whales have now acquired another 60k BTC- specifically, whales already holding 100 to 10,000 BTC. This is the highest daily spike of the year. Whales have now acquired a total of 100k Bitcoins over the past month and two weeks.
Data released by crypto analytics firm Santiment showed that wallets already holding substantial amounts of Bitcoin are acquiring more. They have amassed a total of 9.12 million Bitcoin altogether. Despite the latest 28% reduction in mining difficulty- which is the highest reduction ever recorded- the price of the top crypto asset is in the green now. More buys are being observed on the asset in anticipation of the bull season.
The Biggest Mining Difficulty Reduction Recorded
Global mining hash rate also reduced and the notion, price follows hash rate, held by most miners seems to ring true with the latest spike. Certainly, this is not a sovereign determinant of Bitcoin’s price as over the years since the asset touched its ATH, mining hash rate has been on a decline. Number of active wallets holding Bitcoin has reduced as well. Meanwhile, after plunging to a low of $28k since this year, it has rebounded to the $35k mark.
However, this is not an indication of the bull season as more corrections are expected, especially in light of Grayscale Bitcoin Trust (GBTC) unlocking. Certain experts speculated that selling pressure resulting from the GBTC unlocking may cause a $25k price correction. The unlocking is said to be scheduled for July 19. In contrast, other market observers have argued that BTC already bottomed out at $28k and a bullish trend is the next thing in line.
BTC Green Mining Now at 56%
Interestingly, green BTC mining is now at 56%. This could instigate more acquisition by institutional investors, especially Tesla. Furthermore, if the firm reconsiders its decision in May on Bitcoin payments, the prospects of a further price pump are high. Michael Saylor, head of the Bitcoin Mining Council (BMC) announced that the Bitcoin mining companies now use 56% green energy for their operations.
This is well above the benchmark given by Tesla’s CEO, Elon Musk before his company could resume accepting Bitcoin payments. The SpaceX founder opined in May that all that was needed for the suspension to be lifted was 50% green energy. Although his attention has been drawn to the BMC’s report, he is yet to respond.
Bitcoin miners continue to leave China in droves following its ban on mining operations. There is no indication that the country would rescind its ban in view of the 56% green mining. Observers have asserted that the ban is in order for the Asian country because of its CBDC plan, thus it is striving hard to discourage the adoption of cryptocurrencies. China is preparing for the launch of the Digital Yuan whose distribution has already begun in some cities.
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