• Crypto Lists
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Altcoin
  • Advertise With Us
  • Join our Telegram Community
Newsletter
ItsBlockchain
  • Bitcoin
    Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

    Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

    Bitcoin ETFs could have the same result as CME group futures launch in 2017

    Bitcoin ETFs could have the same result as CME group futures launch in 2017

    featured image

    How Bitcoin can be hacked?

    keep bitcoin safe

    Keep Your Bitcoins Safe: All You Need to Know About Crypto-Cyberthreats

    featured image

    Bitcoin IRA – Everything You Need to Know

    A trillion dollar tsunami is about to hit Bitcoin

    A trillion dollar tsunami is about to hit Bitcoin

    featured image

    Why Bitcoin will always be the number one cryptocurrency? Explained

    Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

    Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

    On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

    On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

    Trending Tags

    • Crypto Gems
    • NFT
    • DEFI
    • Crypto Lists
    • Altcoin
    • Crypto Market
    • Guide
    • IBC Capital
    No Result
    View All Result
    • Bitcoin
      Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

      Is the Russia-Ukraine War the Biggest Test for Bitcoin? Market Update

      Bitcoin ETFs could have the same result as CME group futures launch in 2017

      Bitcoin ETFs could have the same result as CME group futures launch in 2017

      featured image

      How Bitcoin can be hacked?

      keep bitcoin safe

      Keep Your Bitcoins Safe: All You Need to Know About Crypto-Cyberthreats

      featured image

      Bitcoin IRA – Everything You Need to Know

      A trillion dollar tsunami is about to hit Bitcoin

      A trillion dollar tsunami is about to hit Bitcoin

      featured image

      Why Bitcoin will always be the number one cryptocurrency? Explained

      Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

      Crypto markets mirror Wall Street’s fall- Loses 100 billion in 24 hours and Delta Plus Variant creates extreme fear

      On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

      On-chain shows Divergence against Bearish Price-Action, But Bitcoin continues to stay in the Re-Accumulation Phase

      Trending Tags

      • Crypto Gems
      • NFT
      • DEFI
      • Crypto Lists
      • Altcoin
      • Crypto Market
      • Guide
      • IBC Capital
      No Result
      View All Result
      ItsBlockchain
      No Result
      View All Result
      Home Crypto Market

      Whales added 180,000 BTC in two months and miners recovered 52% of hash power, indicating no fundamental changes took place in the recent Evergrande-led sell-off

      Karthik Guttha by Karthik Guttha
      September 21, 2021
      in Crypto Market
      0 0
      0
      Whales added 180,000 BTC in two months and miners recovered 52% of hash power, indicating no fundamental changes took place in the recent Evergrande-led sell-off
      104
      SHARES
      1.3k
      VIEWS
      Share on FacebookShare on Twitter

      The cryptocurrency market is down by more than 10% over the last two days. Bitcoin came back down to its previous 43-44k levels, and others, as usual, followed its price movements. Fundamentally, there were no changes observed, and we are still on the right track.

      But what the hell happened, you might ask? The major reason for this sell-off is the equity-market crisis rollover. Evergrande, China’s second-largest developer, is on the brink of default.

      As the company’s debt crisis is over $300 billion and employs more than 200,000 people, investors globally are nervous it might be another one of those ‘Lehman Moments.’ In this article, we are going to break down some on-chain metrics to see if this debt crisis has changed anything fundamentally for bitcoin moving forward. Let’s get started! 

      Evergrande’s Debt Crisis 

      Before we get to the on-chain stuff, we first need to understand the present market conditions globally. The Dow Jones industrial average lost 500 points, making it the biggest fall since July. We saw London’s FTSE 100 have a similar trading session. It fell below 7,000 for the first time since July. The Europe Index was down by 2% and Hang Seng by 4%. This is the effect of economic contagion. 

      It affects all the investors involved, but more importantly, it will rob people of their jobs and livelihood. This real estate company creates 4 million jobs annually, and all of sudden- it is not going to continue that way. We have also learned that Evergrande took short-term loans from its employees, and if anyone refused, they flat out cut their bonuses. 

      The solution here is a bit tricky. If the government bails out the company, then there will be a similar financial meltdown like the 2008 insolvency of Lehman Brothers. This will not only cause a setback for the world, but it puts us back to square one. Due to the pandemic, we have seen markets crash, and we are now progressing, hoping for better economic conditions. That is why now is a bad time for the world to experience another financial collapse. 

      On the other hand, if the Chinese governments let Evergrande collapse, there will be roiled credit markets, widespread financial distress, and largely affected GDP growth. Some analysts are predicting a liquidity squeeze in crisis mode, as banks seem to be stockpiling yuan. The sell-pressure is not escaping as we would expect, so we have to wait and watch how quickly the government will take action. 

      From an On-Chain Perspective 

      The price of bitcoin is down by more than $5k, but it doesn’t change much with respect to on-chain data. We have seen similar trends continue over the past few weeks. When associated with bitcoin, this equity-market correlation is a false narrative, so recent price movements are completely based on market sentiment. With that being said, let’s move on to some on-chain metrics. 

      Whale Holdings 

      In the last two months, we have seen entities with more than 1000 BTC add 184,699 bitcoins at an average price of $48k. We are closely watching this trend, as it shows big players’ interest and their accumulation power. If we see long-term holders or whales continue to accumulate, it is a very good sign moving forward. 

      The ASOL charts of bitcoin also show older market participants are simply waiting on the sidelines as we know that spending from older entities highlights a bearish picture. Well, that is not the case right now. 

      Supply held by Retail  

      It is always important to zoom out. The percentage of total supply held by Retail is an important factor to consider, as it drives the middle of a bull market. Here, the Retail or ‘little guys’ are market participants who own less than 10 BTC. 

      As we can see, the supply held by retail is rising like crazy, and we do not want to see this go down. The interest from retail players is still growing, so we can expect to see some major upticks in the coming weeks. 

      Binance’s BTC Balance 

      Binance’s bitcoin balance suggests a sell-off from China, but the overall exchange balance remains neutral. 

      Image

      We need to monitor this trend and verify if this is showing up in any other exchanges as well. The other metrics relating to inflows still project a bullish macro case. 

      Percent of Entities in Profit 

      If we draw out zones for understanding the cost basis concentration, we find out that 8.6% of on-chain entities have a cost basis of $43k and $48k. When we hit a new peak ($52.6k) a couple of weeks back, 92% of the entities profit, now that number has come down to 78%. 

      Image

      Miner Recovery 

      While the price of bitcoin faced a little turbulence, its network continues to stay resilient. The miners are coming back online, reaching 137 Exahash on a 7-day MA basis. This is a good sign moving forward because the decline of hash power after China cracked down on mining was more than 50%. With this 52% recovery, we can expect less sell pressure from miners, but we still have a long way to go. 

      We know that when miners sell off their share of BTC, it is a major problem. The previous pullback in June also happened for the same reason. But that is not the case right now. The miners accumulated 14,000 BTC in 6.5 months, and they spent just over 1,300 BTC in late August. 

      Closing Thoughts 

      The supply dynamics haven’t changed much, despite what is happening in the equity markets. Evergrande’s debt crisis needs to be monitored, for sure, as it can indirectly impact the price of bitcoin and other asset classes. Other than that, we remain rock solid from an on-chain perspective. Long-term investors continue to capitalize on these pullbacks, and retail remains unshaken. Even with all the trends showing positive signs, predicting anything in the short term is difficult, so it is better to watch the metrics mentioned above more closely in the next few weeks. 

      Karthik Guttha

      Born and brought up in India, Karthikeya Gutta is a crypto journalist and freelance contributor for ItsBlockchain. He covers various aspects of the industry with in-depth analysis and research. His passion towards blockchain and crypto ecosystem is mainly because he believes it can really change the world and help millions of people.

      IBC-Transparent-Logo-(1)

      Subscribe To Our Newsletter

      Join our mailing list to receive Cryptocurrency investing and trading recommendations to your mailbox.

      You have Successfully Subscribed!

      Tags: featured
      Share42Tweet26Share10

      Subscribe to get notified on latest posts.

      Unsubscribe

      Related Posts

      ATOM Set to Explode after the Revised Tokenomics

      ATOM Set to Explode after the Revised Tokenomics

      by Aniketh Paul
      October 14, 2022
      0

      ATOM 2.0 Tokenomics will change the future of Cosmos hub and its native token. In this article, We'll deep dive...

      What’s Ahead on the Cryptocurrency Rollercoaster?

      What’s Ahead on the Cryptocurrency Rollercoaster?

      by Guest Author
      January 11, 2022
      0

      Cryptocurrency came on fast and furious and surprised financial experts, governments, and users alike with massive fluctuations and outstanding climbs...

      Discussing Bull & Bear Cases in 2022 with On-Chain Analysis

      Discussing Bull & Bear Cases in 2022 with On-Chain Analysis

      by Karthik Guttha
      January 9, 2022
      0

      In our previous on-chain market analysis, we mainly discussed that bitcoin needs to reclaim the $53k level, which is the...

      Highlights from 2021: The Year of Crypto

      Highlights from 2021: The Year of Crypto

      by Karthik Guttha
      December 31, 2021
      0

      2021 will be remembered as a year when we defied the odds.  We lost hope in traditional financial systems that...

      On-Chain Data Shows Open Interest is Reset to Previous Lows in May, Indicating a Spot-Driven Market

      On-Chain Data Shows Open Interest is Reset to Previous Lows in May, Indicating a Spot-Driven Market

      by Karthik Guttha
      December 12, 2021
      0

      The crypto market has been making violent swings over the past couple of weeks. The new covid variant, Omicron, certainly...

      Load More

      About Us

      We curate the best cryptocurrency projects with the intention of adding value for investors through the process of selecting, organizing, and looking after different projects available in the cryptocurrency market.

      • Trending
      • Comments
      • Latest
      featured image

      List of leading partners of Ripple, and How they use XRP?

      February 2, 2021
      Top 5 DeFi Projects on Tezos

      Top 5 DeFi Projects on Tezos

      December 26, 2022
      Top crypto coins for 2018

      Top 25 crypto coins to Buy in 2018 [UPDATED]

      October 4, 2018
      IoT Chain

      IoT Chain : The IOTA Killer

      September 20, 2018
      Highlights from 2021: The Year of Crypto

      Highlights from 2021: The Year of Crypto

      December 31, 2021
      Be warned! Hackers are abusing API keys and stealing your funds

      Be warned! Hackers are abusing API keys and stealing your funds

      June 15, 2021
      cryptocurrency

      Top 10 Cryptocurrency Projects from India

      May 18, 2021
      Polygon: The Swiss Army Knife of Web3

      Polygon: The Swiss Army Knife of Web3

      May 27, 2023
      Worldcoin: The Biggest Crypto Scam or Innovation?

      Worldcoin: The Biggest Crypto Scam or Innovation?

      May 18, 2023
      EIP-4844 Explained | The Biggest Ethereum Upgrade

      EIP-4844 Explained | The Biggest Ethereum Upgrade

      February 7, 2023
      What Blockchain Can Learn From Barnes & Noble and the Jacksonville Jaguars

      What Blockchain Can Learn From Barnes & Noble and the Jacksonville Jaguars

      January 17, 2023
      RINO Enterprise Wallet launches free Community Edition

      RINO Enterprise Wallet launches free Community Edition

      January 14, 2023
      Top 5 DeFi Projects on Tezos

      Top 5 DeFi Projects on Tezos

      December 26, 2022
      Modular Blockchains: The Next Big Thing in Web3

      Modular Blockchains: The Next Big Thing in Web3

      December 12, 2022
      • Top 10 Cheap Cryptocurrencies with Huge Potential in 2021 | Best Penny Crypto Coins

        Top 10 Cheap Cryptocurrencies with Huge Potential in 2021 | Best Penny Crypto Coins

        29635 shares
        Share 11843 Tweet 7402
      • A Mysterious Bitcoin Whale who sold 3000 Bitcoins at 58K$, Bought back 3521 Bitcoins in the last three days

        9933 shares
        Share 3972 Tweet 2483
      • Top 10 Low market cap altcoins to invest in 2021

        7269 shares
        Share 2906 Tweet 1816
      • Top 10 NFT Crypto Projects You Should Know

        7256 shares
        Share 2623 Tweet 1640
      • List of leading partners of Ripple, and How they use XRP?

        6150 shares
        Share 2460 Tweet 1537
      ItsBlockchain

      We are India’s first and oldest Blockchain & Cryptocurrency publication platform started in 2016. We are a one-stop destination for technical analysis, cryptocurrency recommendations, and Blockchain technology resources.

      Buying Guides

      • Buy Bitcoins in India
      • Buy Bitcoins in China
      • Buy bitcoins in Russia
      • Buy Bitcoins in Japan
      • Buy Bitcoins in Turkey

      Important Links

      • Home
      • About US
      • Privacy Policy
      • Promote Your ICO
      • Submit post

      Follow Us

      Contact us

      support@itsblockchain.com

      © 2020 itsblockchain.com - Designed and maintained by Fanatic Coders

      No Result
      View All Result
      • Bitcoin
      • Crypto Gems
      • NFT
      • DEFI
      • Crypto Lists
      • Altcoin
      • Crypto Market
      • Guide
      • IBC Capital

      © 2020 itsblockchain.com - Designed and maintained by Fanatic Coders

      Login to your account below

      Forgotten Password?

      Fill the forms bellow to register

      All fields are required. Log In

      Retrieve your password

      Please enter your username or email address to reset your password.

      Log In
      This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.