At the time of writing, Bitcoin had dipped below the $41,000 mark and held for life at $40,920.49. The king coin has dropped 13.46% in the past seven days and while some investors may be worried about the health of their portfolios, other giants have bought in.
A little bit of this, a little bit of that
North American Bitcoin mining company Bitfarms has announced the purchase of 1,000 BTC for over $43 million, bringing its collection to over 4,300 Bitcoins. This reportedly took place the first week of January 2022.
👌🏻 Our Boost #Bitcoin hold 30%
🔗 More info: https://t.co/xCcIUHkWsU
🚀 $ BITF #BTC #BitcoinMining #Blockchain #NasdaqListed pic.twitter.com/zNz54ps5HK
– Bitfarms (@Bitfarms_io) January 10, 2022
According to a press release, Bitfarms founder and CEO Emiliano Grodzki said:
“With BTC falling while mining hardware prices remained high, we seized the opportunity to cash in BTC. We remain committed to our operational growth strategy and achieve our goal of 8 exahash/second by the end of 2022.”
Naturally, investors may wonder if Bitfarms will regularly buy future discounts, as other whales are known to do. These include Michael Saylor’s MicroStrategy, El Salvador President Nayib Bukele and TRON founder Justin Sun.
When numbers get in trouble
The price of Bitcoin is certainly something to consider, but other metrics can give us a deeper look at the market at the moment.
In fact, Glassnode data shows that on January 10th, Bitcoin registered the flow of a few more than 6 million dollars. This suggests that the most recent drop may not have resulted in panic selling. Instead, holders may be buying at a discount or waiting.
📊 Daily online exchange stream#Bitcoin $BTC
➡️ $ 565.7 million in
⬅️ Out of $ 571.9 million
📉 Net Flow: – $6.2 million# Ethereum $ ETH
➡️ $452.4 million in
⬅️ Out of $ 389.7 million
📈 Net Flow: + $62.7 million# Tether (ERC20) $ USDT
➡️ $271.0 million in
⬅️ Out of $301.1 million
📉 Net Traffic: – $30.2Mhttps://t.co/dk2HbGwhVw– glassnode warning (@glassnodealerts) January 10, 2022
Looking at the velocities, we can see significant November spikes have fallen sharply since early December – possibly due to the December 4 crash. Even at press time, there were There are signs that the rate of Bitcoin is falling further.
This means that overall Bitcoin-related activity is slowing down – signaling that holders are quietly waiting or HODLing.
Source: Glassnode
Collateral damage in Kazakhstan
It’s not just Bitcoin traders who are struggling. The violence and killing that swept through the nation of Kazakhstan has also affected Bitcoin miners. Kazakhstan’s average monthly hash rate in August 2021 is over 18%. Experts have surmised that the ongoing protests and internet blackouts have also hurt hashrate.