Can BTC see recovery in June as the BRC-20 frenzy runs out of steam

Please fol­low and like us:
Pin Share


  • Bit­coin ordi­nals hype cools off result­ing in a min­er rev­enue slowdown.
  • Assess­ing the poten­tial for a BTC ral­ly as min­er reserves surge.

The Bit­coin com­mu­ni­ty had mixed feel­ings about the recent­ly intro­duced BRC-20 token stan­dard. Unfor­tu­nate­ly, those opposed to it could not do much and Bit­coin min­ers are par­tic­u­lar­ly hap­py about it.

The BRC-20 tokens unlocked a lot of net­work activ­i­ty which in turn led to a surge in Bit­coin min­er rev­enue. The excite­ment that pre­vi­ous­ly sur­round­ed the BRC-20 token stan­dard, espe­cial­ly Bit­coin ordi­nal inscrip­tions has since died down.

Bit­coin min­er rev­enue shrunk in the last few days as a con­se­quence. Min­er rev­enue peaked at $17.8 mil­lion at the height of the BRC20 hype.

The recent surge in Bit­coin min­er rev­enue rep­re­sent­ed the largest spike observed in the last three years. The last time that min­er rev­enue was that high was dur­ing the recent peak in May 2020.

Bitcoin miner revenue

Source: Glassnode

High­er min­er rev­enue tends to encour­age more min­er par­tic­i­pa­tion since there is more rev­enue to be shared out. As such, the high­er prof­itabil­i­ty tends to attract more min­ers and this has been the case in the last four weeks.

Unsur­pris­ing­ly, Bitcoin’s hash rate has been on an over­all uptick so far this year. It also soared to the high­est his­toric lev­el at the start of May.

Bitcoin hash rate

Source: Glassnode

The over­all surge in Bitcoin’s hash rate reflect­ed the slight mar­ket recov­ery observed on a year-to-date basis.

Are miners contributing to selling pressure?

Tak­ing Bit­coin min­er reserves into con­sid­er­a­tion is one of the best met­rics for assess­ing the over­all mar­ket sen­ti­ment. A drop in min­er reserves indi­cat­ed low con­fi­dence in the mar­ket. On the oth­er hand, a surge in min­er reserves indi­cat­ed that there was slight mar­ket confidence.

The min­er reserve met­ric has been on an over­all down­trend for the last five months. How­ev­er, it just reg­is­tered its largest spike in the last 24 hours at the time of writ­ing. This means that min­er con­fi­dence was recovering.

Bitcoin miner reserves

Source: Cryp­to­Quant

The new-found Bit­coin min­er con­fi­dence comes at a crit­i­cal time in Bitcoin’s price per­for­mance. BTC has been tuck in the rang­ing mar­ket for a lit­tle over two weeks but it recent­ly embarked on a bull­ish break­out. Inter­est­ing­ly, this break­out came right after the con­clu­sion of the BRC-20 and Bit­coin ordi­nals hype.


How many are 1,10,100 BTCs worth today


Will Bit­coin deliv­er a bull­ish per­for­mance in June? Well, it is still too ear­ly to call espe­cial­ly since whale activ­i­ty does not match Bit­coin min­er reserves yet. How­ev­er, a bull­ish min­er reserves spike and volatile direc­tion­al move­ments could be expect­ed now that the price was mov­ing out of a low vol­ume range.



Source link

Please fol­low and like us:
Pin Share

Leave a Reply

Your email address will not be published. Required fields are marked *