Miners shift to hoarding amid bitcoin’s hash rate recovery

In June, bitcoin’s hash rate fell to 84.79 exache per second (EH/s), its lowest value since September 2019 (according to Blockchain.com).

The drop in network capacity was observed amid a mass migration of miners from China. Almost all of the mining pools began to sell mined BTC in order to obtain funds to transport equipment to other countries and its subsequent launch.

In July, the migration ended, and the bitcoin hash rate began to gradually increase. The figure is now back to the levels of early June (139.5 EH/s).

According to the Glassnode platform, the recovery of the hash rate was accompanied by a gradual transition of miners to the accumulation of mined cryptocurrency.

Such a trend contributes to an easing of pressure on the market and leads to a fall in the supply of BTC. Analysts believe that miners’ hoarding strategy will be one of the factors that will change the dynamics of bitcoin movement in the near future.

The researchers took the last six months as a starting point. During this period, accumulation alternated with sales, but overall the trend was positive.

A total of about 14,000 bitcoins worth about $600 million were added to miners’ wallets. Accumulation became more active in July and August, according to the Glassnode report.

Meanwhile, under pressure from a sell-off in the U.S. stock market, the cryptosphere began the new week with a surrender of positions. Bitcoin dropped in value below $43,000. Now the coin is trying to bounce back from the $42,950 mark.

WhaleMap analysts pointed to a strong support zone for the cryptocurrency around $40,000. According to them, “whales” should help the coin to hold on the fundamental values.