After the fork last week, things have not been rosy on the Bitcoin network. Both miners and exchange companies have had a fall in revenue even up till now.
After the halving on May 11, miners started selling more of the coins and this has contributed in no small measure to the reason why Bitcoin has not yet overtaken the $10,000 price.
A monitoring resource known as CryptoQuant reported that expenses from Bitcoin accounts increased six times between May 16 and May 20.
Bitcoin miners record high volume of sales
The recent activity of Bitcoin miners selling off crytpocurrencies can be likened to what happened before the fork on May 11. Miners’ sales increased from about 2100 BTC to about 5,000 BTC a day before the halving.
CryptoQuant has confirmed that the reason for the recent high sales can be linked to the depreciation of Bitcoin.
Before the halving, high sales were recorded because of market speculations and the same has happened the week after the halving. The market changes when no one is sure of the next price move of the currency. However, things have been better after the halving as only about $600 price change has been recorded so far. This is in contrast to the over $1,200 price difference recorded before the halving.
But things should not continue this way if Bitcoin has to grow and continue to be the people’s cryptocurrency choice. Sooner than later, it is expected that the price of the coin should go over $10,000.
Cryptocurrency exchange companies reserves keep falling
Since March 12, many exchanges have not been where they used to be before the Bitcoin crash. CryptoQuant was able to gather that exchanges have lost much of their reserves and conditions have not yet improved despite Bitcoin gaining some grounds after the crash.
On May 20, the total reserve of the best 17 exchanges was about 1.18 million BTC. Even when Bitcoin traded for $3,100 in 2018, it was not as bad as this.