Bitcoin News

Bitcoin Could Give Shell Shocks After These Signals At Exchanges

The narrative that the bear market is always the same may be dismissed this time for BTC and other assets. No, it is not the fall of value to notice since all assets more or less have replicated each other like the previous bear market, but this time, there’s a greater mess. 

Hashrate Nosedived for BTC

Mining crackdown in China had a global impact on BTC’s prices. Since, in China, the electricity cost is moderate, mining is profitable. However, when miners from China moved to the US and other regions, profitability took a hit for Bitcoin. As a result, the hash rate has dipped to new lows registering a 30% total crackdown. 

BTCs hash rate has been down
Image 1. Hash Rate of BTC

Active Addresses Down on Exchanges

Active addresses have gone down as well. However, such an occurrence may have two narratives (i) Either hodlers are selling (ii) Or, Bitcoin is leaving the exchange to cold wallets. But the “buy the dip” rhetoric did go rampant like wildfire. After more than two years, BTC has witnessed the 20K range. That said, it is likely that investors may be buying and moving the assets from the exchanges to cold wallets. 

Image 2 Wallet Creation Down

Exchange Reserves Down for BTC

Unlike the last bear market, this time, exchanges are losing their reserves thick and fast. More than 21 major exchanges have lost $20,000 in BTC every hour. Such a quick liquidity loss is a major challenge for them to stay afloat. 

BTC Exchange Reserve

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