Crypto Weekly: Bitcoin Blockchain Metrics Continue To Fall

Jul 05, 2021
10:07
2 min reading

Choise.com team

Moreover, the Bitcoin blockchain has some problems. So its hashrate dropped to 60 Ehash/s. This is three times less than the historical maximum shown in the spring of 2021. The drop in total computing power was almost 70% in two months. There has never been such a strong collapse of this indicator.

Due to the drop in power, the difficulty of the Bitcoin network has also dropped significantly this week by 28%. This is an absolute anti-record for this metric. At the same time, the difficulty of the network has decreased by two times from its maximum in mid-May 2021. All these are the consequences of China’s tough mining policy. The outflow of miners from this state has caused the current collapses in blockchain metrics.

At the same time, it became known that Bitcoin mining is environmentally friendly and uses the share of green or renewable electricity by 56%. The topic of Bitcoin’s ecologity was raised by Elon Musk in April – May 2021. Before that, most of the market participants did not think about it. This is evidenced by a survey conducted by Investing.com. A third of investors and traders were not aware of the negative impact of mining on the environment before the statements of the head of Tesla.

Also this week there was news about stablecoins. So, it became known that the Circle company launched USDC on the Tron blockchain. Moreover, this company is going to launch this coin on 9 more popular blockchains, which will create high competition for Tether and its USDT product.

A couple of days later, the 1inch project team announced that they would create their own one1inch stablecoin pegged to the US dollar. At the same time, its functions will be expanded and it will allow a member of the DeFi segment to receive additional benefits from liquidity pools and staking.

An important update was presented by CoinMarketCap. The team of the cryptocurrency and exchange aggregator has implemented the exchange of ERC-20 and Ethereum tokens on their platform. You can use this feature by connecting to Metamask, Formatic, Portis and Wallet Connect. Thus, this site moves into a new segment – DEX. This is a very unexpected decision from the largest website in the crypto industry.

Let’s see how all this affected the chart of the first cryptocurrency and what to expect in the next week:

Bitcoin still cannot get out of the sideways movement. Within two weeks, the chart runs into resistance between $35,500 and $36,500 and cannot break it. Trading volumes for the first time in a long time dropped below $30 billion per day and the demand for the first cryptocurrency also fell significantly.

Indicators on the 4-hour timeframe have already increased significantly and turned down. This increases the likelihood of a new price decline. Now the chart has moved down to the uptrend and is testing it at $34,500. If the price does not hold here, then Bitcoin could drop to $32,000.

There is a strong weakness in the market and so far it is not clear what can change this. The situation with altcoins was slightly better last week and some of them showed good growth. However, this looks more like a short-term buy-sell phenomenon, most likely, the crypto market will turn down again in the coming week.