China dealt the Bitcoin market a blow after banning crypto mining deals in the nation. The decision will undeniably have a long-lasting impact on the BTC network. As much as the moves affected investors, miners appear to have suffered most. However, miners look to have a better environment now as the 'great migration' seems to end. As usual, investors need to consider various things before investing in BTC.
The BTC Network
Miners experienced the adverse impacts of the move by China when forced to find other alternatives to keep operating. The declined hash rate in June and July exacerbated the situation on investors who were already concerned. However, the current condition denotes that the miners might be back on the game. That is because the hash rate has risen at a stable rate in the previous sessions.
The increased hash rate indicates that miners rejoined the crypto network after relocating to 'profitable' regions. The 19% improvements came after Black Rock Petroleum firm declared the BTC mining agreement. The contract highlights the company running one million mining machines, the initial 200,000 situated in Canada, Alberta.
However, the mining shift is not complete as only a few miners joined the market. It might take time for the network to regain its pre-crash hash rate levels. The mining difficulty has to gain grounds to its ranges before the ban, to confirm a complete recovery. At the moment, mining difficulty remains at an 18-month low. However, the levels would recuperate as the crypto miners relocate.
As the network seems to improve, miners' digital wallets get heavier. The 30 day SMA indicates an increase in miner returns. The system has recovered some of its lost revenue since the start of July. Moreover, the trend seems to keep pace. That indicates that both miners and investors are in a lucrative spot.
Besides the raised revenue, on-chain metrics show massive accumulation. With the declining selling pressure, miners accumulate more BTC and HODL existing ones. The miner's position file shows that the selling pressure remains at a yearly low. Keep in mind that vales more than two are selling thresholds. The accumulation seems a good idea since the miners enjoy profits from the 30.25% BTC surge over the past week.
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