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The difficult period for Bitcoin miners that began after the halving event in April may be nearing its end. The latest data from the hash ribbon indicator tracked by blockchain data analysis firm Glassnode signals a recovery after a multi-month capitulation period.
What’s Happening on the Bitcoin Front?
These periods occur when the short-term hashrate is relatively low, and the 30-day moving average falls below the 60-day counterpart, indicated by hash ribbons. Throughout Bitcoin’s history, such phases were common even in bull markets, but investors are most interested in the recovery of Bitcoin’s price when these phases end.
The latest capitulation phase ended in August 2023, and after a brief drop to $25,000, the BTC/USD pair nearly doubled by the end of the year. According to Glassnode data, the mining hash rate exceeded 690 exahashes per second (EH/s) last week, reaching its highest levels since early June.
Ethereum ETF Process
This week marks a significant moment in the crypto industry’s journey toward institutional adoption, but this time the focus is on the largest altcoin, Ethereum. Six months after the launch of Bitcoin exchange-traded funds (ETFs) in the US, Ethereum ETF funds will also be launched.
The effects on Ethereum’s price movement are unknown, but investors are preparing for volatility similar to what hit the BTC/USD pair at the beginning of the year. Popular investor Jelle questioned this process in an X post:
“Multiple spot ETF funds will be launched in the coming days, making it easier for hedge funds and retirees to buy Ethereum. ETF funds significantly boosted Bitcoin; will they do the same for Ethereum?”
ETH/USD pair remains relatively cool compared to Bitcoin despite the ETF process, increasing by about 4% last week compared to Bitcoin’s 7%.
Notable Developments
This month, social media data shows how much Bitcoin bears have lost their dominance over the market narrative. According to research firm Santiment, terms like selling or dropping are decreasing in social volume. However, bulls are afraid of making mistakes in price direction. In a July 22 X comment, the following statements were made:
“Bitcoin and cryptocurrency have experienced a surprising recovery in the last two weeks, silencing the crowd. The voices predicting a bear market at the beginning of July disappeared as Bitcoin once again approached $70,000.”
Meanwhile, according to data from the classic sentiment indicator Crypto Fear and Greed Index, which measured 70/100, crypto market sentiment remained in the greed zone as the week began.
