The dominance of net transfers of Bitcoin from exchanges on daily withdrawals climbed to an estimated 2,000 BTC. According to data from Glassnode, an on-chain market research firm, more bitcoins were withdrawn from exchanges than sent to exchanges in July.
Glassnode stated in a recent report that a common trend in 2020 and the first quarter of 2021 will be the depletion of Bitcoin reserves on the exchanges.
However, since the recent record high of $64,000, bitcoin flow into exchanges has increased significantly. Glassnode noted that when a large amount of BTC was deposited on the exchange in May and the market sold about 50%, that trend was greatly reversed.
Recent analysis shows that exchange inflows have reversed again, with an average of 2,000 BTC being withdrawn from exchanges every day.
BTC Balance on Exchanges
Glassnode also reported that the total Bitcoin balance on the exchange has decreased by 40,000 BTC in the past three weeks. That amount represented 28% of the total inflow to the local low in April. The inflow during Bitcoin’s recovery to new highs resulted in 140,000 BTC being deposited on the exchange. The exchange currently holds around 2.56 million bitcoins.
Other notable findings include early signs of miners’ recovery. The overall hash rate appears to be recovering. The hash rate, which recently dropped 55%, was able to regain 16% of that. This suggests that around 29% of the affected hash power was back online.
After China imposed a large-scale mining ban, miners moved their operations out of China, causing the mining hash rate to rise. In the United States, companies have started mining operations on their coast, and Texas has become a cheap destination because of its crypto-friendly government officials and cheap electricity.
A focus of Bitcoin mining is still sustainability and power consumption. Companies are looking for different ways to mine cryptocurrencies. Including hydropower plants and microgrids.