Bitcoin miners appear to be emerging from a challenging phase that began after April’s halving event. Recent data from the hash ribbon indicator, monitored by blockchain data analysis firm Glassnode, suggests a recovery following a prolonged period of capitulation.
What Does the Data Show?
Periods of low short-term hashrate, where the 30-day moving average falls below the 60-day average, are highlighted by hash ribbons. Historically, these phases have occurred even during bull markets. Investors are particularly interested in the recovery of Bitcoin’s price as these phases conclude.
The latest capitulation phase ended in August 2023. Following a brief drop to $25,000, BTC/USD nearly doubled by year-end. Glassnode data reveals that the mining hash rate surpassed 690 exahashes per second (EH/s) last week, the highest since early June.
How Will Ethereum ETFs Impact the Market?
This week marks a pivotal moment for institutional adoption in the crypto sector, focusing on Ethereum. Six months post the launch of Bitcoin ETFs in the U.S., Ethereum ETF funds are set to debut. The impact on Ethereum’s price remains uncertain, though investors brace for potential volatility akin to the BTC/USD fluctuations earlier this year.
Notably, Ethereum’s price movement has been comparatively muted, rising about 4% last week versus Bitcoin’s 7% increase.
Significant Insights
– Social media sentiment shows declining dominance of Bitcoin bears.
– Bullish terms are becoming more common, indicating positive market sentiment.
– Crypto Fear and Greed Index remains in the greed zone, suggesting ongoing market optimism.
This month, social media mentions of terms like “selling” or “dropping” have decreased, indicating a shift in market sentiment. According to Santiment, Bitcoin and cryptos have seen a surprising recovery, silencing bearish predictions as Bitcoin inches closer to $70,000.
Meanwhile, the Crypto Fear and Greed Index shows a score of 70/100, reflecting that the market started the week in the greed zone.