Bitcoin Hits Record Hash Rate, Lost Coins Resurface, and Miners Double Down

Bitcoin's network hashrate has reached a new all-time high, and long-dormant coins are being reactivated, driven in part by spot Bitcoin ETFs. Active supply has grown, while the estimated number of lost coins has declined. This suggests a more liquid and dynamic market, with participation deepening and investor behavior changing. BTC is consolidating at around $120K but has room to climb before hitting exhaustion, with indicators pointing to a healthy pause rather than a reversal.

Bitcoin's network hashrate has reached a new all-time high, surpassing 850 EH/s, according to recent data [1]. This surge is a clear indicator of unprecedented miner confidence and growing network security. The rise in hashrate coincides with a significant shift in on-chain behavior, driven in part by the approval and increased adoption of spot Bitcoin ETFs.

Since the launch of spot Bitcoin ETFs in early 2024, active supply has grown by nearly 900,000 BTC, while the estimated number of "lost" coins has dropped by over half a million [1]. This suggests that coins previously thought to be unrecoverable are moving again, likely spurred by rising confidence and prices. Long-term holders are repositioning or offloading portions of their stash, a familiar move during bullish cycles.

Bitcoin's price has been consolidating around $120,000, with the daily RSI at 64, indicating strong but not yet overbought momentum [2]. The OBV remained steady at 1.76M, showing consistent buying pressure even during sideways movement. These indicators point to a healthy pause rather than a reversal. If volume increases and the RSI pushes above 70, Bitcoin could break above its short-term resistance and enter a fresh rally phase.

Hedge funds such as Citadel LLC and Point72 Asset Management have been active in acquiring shares of spot Bitcoin ETFs during the first quarter, as cryptocurrency prices surged [3]. Citadel's IBIT holdings rose by 2.1 million shares, while Point72 boosted its IBIT holdings by 1.4 million shares. These purchases suggest a growing institutional interest in Bitcoin, further fueling the market's liquidity and dynamism.

Metaplanet, a Tokyo-listed company, has also been increasing its Bitcoin holdings. It recently acquired 780 BTC for $92.5 million, raising its total holdings to 17,132 BTC worth about $2 billion [4]. This strategic move underscores the increasing demand for Bitcoin from institutional investors.

Despite the consolidation, Bitcoin's market structure appears favorable for long-term growth. The asset's $1.1 trillion realized market cap, achieved on July 26, underscores its integration into global finance [5]. However, analysts note that sustained bullish momentum requires confirmation above the $110,000 support level, which aligns with the +0.5σ MVRV pricing band from Glassnode [5].

In conclusion, Bitcoin's network hashrate surge and the reactivation of long-dormant coins, driven by spot ETFs, suggest a more liquid and dynamic market. The growing institutional interest and strategic acquisitions by companies like Metaplanet further bolster Bitcoin's position. As Bitcoin consolidates around $120,000, investors should monitor key resistance levels and indicators to gauge the asset's next move.

References:
[1] https://ambcrypto.com/bitcoin-breaks-records-as-lost-coins-awaken-miners-double-down/
[2] https://finance.yahoo.com/news/hedge-funds-scooped-spot-bitcoin-214500329.html
[3] https://coinpedia.org/crypto-live-news/metaplanet-boosts-bitcoin-holdings-to-2-billion-with-latest-purchase/
[4] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-consolidates-118-000-0-21-gain-volume-drops-29-2507/
[5] https://www.nasdaq.com/articles/3-reasons-bitcoin-surge-isnt-over