According to BlockBeats, on September 11, the encryption data analysis platform glassnode released a report stating that “miners are still the core participants of the Bitcoin network. Despite market volatility and uncertainty, Bitcoin miners continue to install new ASIC hardware, pushing the overall computing power up (14-day moving average) to 666.4 EH/s, just 1% lower than the historical high.
Nonetheless, miner revenue has declined significantly since Bitcoin prices hit new highs in March. A large portion of this revenue decline can be attributed to reduced expense pressure. This is driven by reduced demand for token transfers and reduced transaction fees from runes and inscriptions.
Miners are typically pro-cyclical, acting as sellers when markets fall and holders when markets rise, so some degree of selling pressure can be expected in the event of further declines.
Centralized exchanges remain a core venue for speculative activity and price discovery. Therefore, we can assess trading volume on these venues as a proxy for investor activity and speculative interest. Performing a similar 30/365 day momentum crossover analysis of exchange-related inflows and outflows, we can see that the monthly average volume has fallen significantly below the annual average. This highlights a decline in investor demand and a reduction in speculative trading in the current price range. This is also evident in the institutional investment space, with the Bitcoin and Ethereum ETFs showing net outflows.
The CVD indicator estimates the net balance between market buying and selling pressure in the spot market. Using the same methodology, we noticed that over the past 90 days, investor selling pressure has been increasing, resulting in a downward price trend.”
