Bitcoin, the world’s most valuable digital currency, dropped below $32,000 on Monday after a correction of approximately 20% in the last seven days. In addition to its price dip, the network activity of Bitcoin has dropped substantially in recent days.
According to the latest on-chain analysis report published by crypto analytics platform, Glassnode, active Bitcoin addresses have reached 884,000, which is down by nearly 25% from the latest peak of 1.16 million.
In terms of the total USD value settled on the Bitcoin network, the world’s largest cryptocurrency saw a drop of 63%, compared to the recent highs in May 2021. Bitcoin is currently settling around $18.3 billion per day.
“Naturally, the priority fees for inclusion in the next block have fallen significantly as network congestion almost completely clears. Bitcoin total fees paid have fallen to just under 30BTC/day ($1.2M), coincident with levels in late 2019 and early 2020. This currently represents around 4% of miner revenue with the block subsidy making up the remaining 96%,” Glassnode mentioned.
The latest correction in Bitcoin and other cryptocurrency assets has increased liquidations across the crypto market. Yesterday, nearly $800 million worth of long crypto positions were liquidated.
BTC mining remained the hottest topic of discussion in the last few weeks due to the latest announcement by China about the restriction of Bitcoin mining activities in the country. Glassnode mentioned that due to the uncertain conditions in the country, some of the Chinese crypto miners are expected to liquidate a portion of their Bitcoin holdings.
“One of the largest migrations of Bitcoin hash-power in history appears to be underway. Following an official ban on mining activities in a number of Chinese provinces, many miners are in the process of shutting down or migrating their hash-power outside of China’s borders. Over the past two weeks, the estimated mean hash-rate (7DMA) has declined by around 16%, falling from approximately 155 EH/s to around 125 EH/s. Hash-power has now returned to levels that were sustained throughout mid-2020,” the report added.