PakGazette – Max Keizer, a prominent maximalist and currently BTC advisor to El Salvador President Nayib Bukele, has shared his opinion on why Bitcoin continues to fall now despite the main bullish drivers. Among them are MicroStrategy’s recent frequent BTC purchases.
After falling from almost $102,000 to slightly below $93,000 between January 7 and 9, the world’s leading cryptocurrency, Bitcoin, has regained the $95,700 level and has been moving in the range near $95,000. In the last 24 hours, BTC has lost 2.57% and is changing hands at $92,933 at the time of writing. The main reasons for this prolonged correction have been recent geopolitical events, in particular the statements of the newly elected president of the United States and his ally and lover of cryptocurrencies, Elon Musk.
Keizer highlights Bitcoin hash rate on price
The Bitcoin advisor to the president of El Salvador responded to a question from a BTC enthusiast on social media platform Over the past month and recently, Keizer recommended that User X look at the Bitcoin hash rate. “The price of Bitcoin says nothing,” he added.
Keizer’s reference to the BTC hash rate implies that this metric may say a lot more about the health and security of Bitcoin right now than about its fluctuating price. On January 12, the BTC hash rate saw a notable increase of 24.78% from the previous day, rising to 939.75 million terahashes per second (TH/s). In turn, the difficulty of Bitcoin mining also increased that day, now standing at 110.45 billion.
The difficulty level is adjusted every two weeks and ensures that it still takes miners 10 minutes to produce a new Bitcoin block, ensuring the health and stability of the network. An increase means an influx of new miners, which is good for the network and is likely to ultimately have a positive impact on the price of Bitcoin.
Big BTC whale activity plummets
According to figures shared by cryptocurrency analyst Ali Martinez, the number of large Bitcoin transactions has seen a drastic drop in the last 30 days. This metric has dropped almost 52%: from 33,450 to 16,180.
Santiment clarified that this is a likely sign that large cryptocurrency whales are significantly slowing down their trading activity.
