Bitcoin has failed to regain its footing above $70,000, even with the US Bitcoin ETFs enjoying a five-week streak of inflows and global ETFs now holding over a million BTC. Despite a flattening network hashrate and difficulty, a sudden spike in transaction fees gave hashprice a temporary boost. In this article, we’ll dive into these captivating topics and more.
Bitcoin Fails to Regain its Footing Above $70,000
Five Week Streak Inflows Bitcoin ETFs
Network Hashrate Ranging
Difficulty Adjustments Flatting
Transaction Fees Spiking Again
Hashprice Nearly at $90/PH/Day
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Specs and Break-Even Hashcost
Benchmark to Network Average Efficiency
Profitability per Day
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Bitcoin Fails to Regain its Footing Above $70,000
Bitcoin has failed to regain its footing above $70,000. Liquidation heatmap data shows notable sell-offs that have contributed to the decrease in Bitcoin’s price. Additionally, Bitcoin is correlating with cautious equity markets ahead of Tuesday’s U.S. Consumer Price Index (CPI) report and a Federal Reserve rate announcement on Wednesday. As a result, Bitcoin moved lower along with depressed equity markets.
Five Week Streak Inflows Bitcoin ETFs
Last week, there was a significant ETF inflow totalling 25.9k BTC ($1.8 billion). BlackRock’s IBIT alone brought in 13,426 BTC worth $935 million. BlackRock surpassed 300,000 BTC in assets under management (AUM), overtaking the AUM of Grayscale’s converted GBTC fund the week prior.
Last week’s net inflows matched those for the entire month of May. The Bitcoin US ETFs marked a five-week streak of net inflows. Global spot Bitcoin ETFs now hold over 1,031,973 BTC, worth more than $70 billion. This represents more than 5% of the issued BTC supply.
After 19 days of inflows, the ETFs saw a net outflow of $64.93 million on Monday June 10th. This is noteworthy because it shows that investors might be moving away from accumulation and toward profit-taking or taking less risk.
Network Hashrate Ranging
Network hashrate shortly broke back above the 600 EH/s mark on the 7-Day Moving Average (DMA). The first time hashrate reached this level was in early February. Although the 7 DMA saw a high of 660 EH/s and a low of 570 EH/s, hashrate has been hovering around the 600 EH/s level for most of this year.
When zooming out and looking at the 30 DMA, it becomes apparent that network hashrate growth has slowed down compared to 2023 and Q1 2024. With the summer just beginning, we are yet to see the impact of the heat on the demand response of miners in major mining states like Texas.
Difficulty Adjustments Flatting
Last week, there was a slight downward difficulty adjustment of -0.79%. Comparing the difficulty between the recent halving and the previous halving in 2020, we can conclude that the adjustments have been less volatile. It shouldn’t be a surprise that the flattening of the network hashrate is reflected in the recent difficulty adjustments.
Transaction Fees Spiking Again
On June 7 miners enjoyed another surge in transaction fees. Various blocks contained a transaction fee in BTC which was bigger than the block subsidy. This was the first time this happened since the Runes project was launched during the halving event.
Unlike the peaks we witnessed in transaction fees over the last year, this one was not caused by ordinal inscription projects or Runes. This time, a lot of activity came from the OKX exchange, most of it related to internal transactions to consolidate outputs. Exchanges do this from time to time for wallet management purposes but OKX’s transaction fee estimation code was faulty, causing the exchange to bid up fees against its own transactions. This created a feedback loop that drove up the fee rate for its UTXO (Unspent Transaction Output) consolidation.
Hashprice Nearly at $90/PH/Day
As a consequence of the spike in transaction fees, hashprice jumped up to $88/PH/Day. Unfortunately, this surge was short-lived, and hashprice came down again. It is interesting to note that the bottom of hashprice is slowly rising. After hitting a record low of $45/PH/Day on April 30th, hashprice has been trending upwards. This is due to the upward BTC price action combined with minor changes in difficulty.
And now we move on to the next content for our Premium Members:
Miner Compared: Bitmain Antminer S19j Pro, XP and S21
Specs and Break-Even Hashcost
Benchmark to Network Average Efficiency
Profitability per Day
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