Highlights in the chain

DEFINITION: The number of unique accumulation addresses. Accumulation addresses are defined as addresses that receive at least two non-dust transfers and have never spent funds. Exchange addresses and addresses received from coinbase transactions (miner addresses) are discarded. To account for lost coins, addresses that had been active for more than seven years were also omitted.

Recent data from Glassnode indicates notable movements in Bitcoin accumulation addresses. The number of these addresses declined earlier this year and a resurgence began in late April. This increase is in line with broader market optimism and the stabilization of Bitcoin’s price around $60,000. According to CryptoSlate, long-term holders have added nearly 70,000 BTC since the end of the cycle, reversing a previous trend of divestment.

Furthermore, the Bitcoin halving spurred substantial accumulation. More than 115,000 BTC were accumulated in April alone, reflecting strong market confidence. This behavior is further evidenced by an increase in investor activity, with significant inflows into Bitcoin accumulation addresses reaching record levels in April.

These patterns suggest a bullish outlook among long-term holders and other key market participants, highlighting a collective confidence in Bitcoin’s future prospects. The interaction between these accumulation trends and market events like the halving will be crucial in shaping Bitcoin’s trajectory in the coming months.

Accumulation addresses: (Source: Glassnode)

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Bitcoin’s rally to near a record high is stirring up animal spirits – not just in the cryptocurrency market itself, but in the broader financial world that left the digital asset sector for dead last year.

The shift in sentiment can be seen in the improving outlook for deal flow, highlighted by Robinhood Markets Inc.’s purchase of crypto exchange Bitstamp Ltd. on Thursday, to a resurgence of venture capital investment to what some analysts expect a record amount of initial public offerings of companies linked to the sector.

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Fortaleza Digital Mining reported a 47.1% decline in its monthly revenue Bitcoin mining production in May.

The company extracted 82 BTC during the first full month after the halving, compared to 155 BTC in April.

Meanwhile, revenue for the month was $5.2 million, a 46% drop from the previous month.

Stronghold explicitly attributed the drop to the halving. The company said:

“The main driver of the decline was due to the first full month of post-halving operations.”

The company also reported an average hash price of $0.052 per TH/s in May, down from 0.095 in April. He attributed the change to the halving and reduction in block rewards, the 0.8% decline in Bitcoin’s price, and the drop in transaction fees to 7.4% in May from 25.3% in April.

It observed a network hash rate of 1.2%, partially offsetting the trend.

Decline in production at all levels

Similarly, Cipher Mining reported that it mined 166 BTC in May versus 296 BTC in April, representing a 43.9% month-over-month drop.

The company acknowledged the impact of the Bitcoin halving, but emphasized that it maintained positive cash flows and expanded its inventories and operating locations.

Digital Marathon fared a little better, reporting that produced 616 BTC in May, down 27.5% from 850 BTC in April. The company said it mitigated the drawdown by increasing the number of mining blocks won in May to 170 – up from 129 blocks in April.

Marathon said it held 17,857 BTC at the end of May and sold 390 BTC in May. It reported a powered hash rate of 29.3 EH/s and an installed hash rate of 30.6 EH/s.

sCleanspark, Riot PlatformsIt is Bit Farms also reported similar declines in its BTC production fell

O Bitcoin halved occurred on April 20, 2024, reducing block rewards from 6,250 to 3,125. The event also impacted miner’s difficulty.

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