Despite a price dip and macroeconomic challenges, the Bitcoin (BTC) mining sector is growing rapidly. Glassnode’s data highlights a sharp rise in the hash rate of Bitcoin, one of the most important indicators of BTC’s network activity.
According to Glassnode, the mining rate climbed to another record high level of 194 EH/s on 15 February, which is up by more than 100% since the lows of July last year. Compared to the start of 2022, the hash rate jumped by more than 16%.
“Bitcoin hash-rate has continued to climb in 2022, pushing to a new ATH of 194EH/s on a 30-day moving average basis,” Glassnode noted.
In 2021, China imposed a ban on all crypto mining activities in the region. Leading regional miners shifted their operations to other locations, and during the migration process, the Bitcoin hash rate dropped significantly. However, BTC’s rising global demand fueled a sooner-than-expected recovery and the mining rate increased along with revenues.
Bitcoin’s Exchange Flows
Large Bitcoin addresses are moving the crypto asset at a rate of nearly 43,000 BTC per month from digital trading platforms to wallets. “We continue to see net coin outflows at a non-trivial rate. Across all exchanges, we track, BTC is flowing out of reserves and into investor wallets at a rate of 42.9k BTC per month. This trend of net outflows has now been sustained for around 3-weeks, supporting the current price bounce from the recent $33.5k lows,” Glassnode mentioned in its weekly on-chain analysis report.
The dominance of long-term BTC holders has increased in the crypto market. Large Bitcoin wallets are currently holding a total of over 13 million coins. “Since the October ATH, long-term holders have spent only 175k BTC on the net, demonstrating a remarkably resilient cohort of holders, despite the prevailing macro headwinds,” the on-chain analysis firm added.
