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5 events that could put an end to the current crypto bear market
Crypto bear markets are rough, but there are five moonshot events that could turn the ship around.
Decline In Bitcoin Miner Revenues Suggests More Sell-Offs May Follow
Bitcoin miner revenues have been in decline since the bear trend began and this has led a good number of miners to sell their BTC holdings in order to keep their operations afloat. However, the expectation that the bear market would soon resolve and miners would once again be in the green has since gone out the window. With miner revenues continuing to plummet, miners may have to resume selling off their holdings to keep up with the market.
Miner Revenues Fall
For the past week, there has been no change in the downtrend in miner revenues. On-chain metrics show that it was down 0.59% from the prior seven days bringing the total daily miner revenues to $ 18.62 million. Mostly, it has remained flat during this time and other metrics have dived further into the red during this time.
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An example is the fees per day culled by miners. It was down 10.55% in the same time period, one of the highest declines recorded in this time period. With fees per day being so low, the percentage of the daily miner revenues which it makes up is also down, now sitting at 1.50%.
Additionally, the daily transaction volumes are also down, which explains the decline in fees per day realized. This was down 9.75%, although transactions per day had seen some growth. It rose 1.96% in the same time period and is now at 248,071 per day.
Average transaction volume has also followed the decline in network activity with an 11.46% decline. This now stands at $ 16,333.
Bitcoin Miners Selling Bitcoin?
Over the course of the last several months, miners have seen their cash flow plummet. These miners still have outstanding debts from machine orders that they had made during the bull market of 2021 but have not been profitable enough to keep their mining activities going. What had resulted from this was a sell-off among bitcoin miners.
Most prominent of these have been the sell-offs from top public bitcoin miners such as Marathon Digital and Riot Blockchain. In June, it was reported that these public miners had had to sell off more BTC than they had produced in the space of a month.
BTC close to test $ 21,000 | Source: BTCUSD on TradingView.com
Most recently, the news of another bitcoin miner dumping its holdings emerged. This time around, Core Scientific had announced that it had sold the majority of its BTC in a monthly update post. It realized a total of $ 167 million from the sale of 7,202 BTC. Following this, the miner’s bitcoin holdings now sit at 1,959 BTC.
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This trend was expected as soon as the price had begun to drop. However, with no recovery in sight, it is expected that more miners will come forward to sell their BTC. What’s more, these are reports from public miners and there’s no way to tell how much BTC private miners have had to dump.
Featured image from BBC, charts from TradingView.com
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Active Ethereum Addresses Touch 2020 Levels, Will Price Follow?
Ethereum active addresses have continued to decline. This follows the market crash where the price of Ethereum had dropped to below $ 1,000 before staging another recovery. This decline has shown various implications for the digital asset and also points towards how investors could be feeling towards the digital asset.
Activity Falls To 2020 Lows
Data from the Block shows that the active addresses on the Ethereum network on a seven-day basis are down. These active addresses had hit a new all-time high back in June 2021 when the bull market had been in full bloom. The rise in active addresses was attributed to new investors moving into the digital asset due to the immense success it had seen so far at that point.
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However, as the price of the digital asset had begun to suffer, active addresses had gone down with it. This came to a head in the middle of June 2022 when the crypto market had experienced arguably the worst market crash in its more than a decade of existence. Ethereum had quickly declined from around $ 1,800 where it had been trending and touched a low below $ 900.
Following this, there had been an uptick in the active addresses as investors scrambled to move their funds to avoid further losses. However, as sell-offs have died down, the number of active addresses has also taken a nosedive.
ETH active addresses decline | Source: The Block
Last week, it hit a new two-year low with 403.38k active addresses on Ethereum on a rolling 7-day basis. This had been in line with the number of new addresses on the network on the same rolling basis which had also fallen to December 2020 lows.
Ethereum In Response
With the new week just starting, the implications of the decline in active addresses are still yet to be seen. However, it does show what investors may be doing in regards to their holdings. One of these could show that there is now fatigue in the sell-offs that have rocked the market in recent times. As such, most investors are not moving their coins around in order to dump them.
If following historical movements, this could also mean that there is a recovery coming for the digital asset. Given that the last that the number of active addresses was this low, right before the 2021 bull run, a halt in sell-offs could definitely see the cryptocurrency retrace upward.
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However, if a recovery is on the charts, it will be a hard-fought battle given the resistance that is building just above $ 1,200. If ETH is able to break this resistance, it will put it right above its 20-day moving average, providing the momentum needed to test $ 1,500 once more.
Featured image from Admiral Markets, chart from TradingView.com
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