PK Press Club – Max Keizer, a prominent maximalist and currently BTC advisor to Salvadoran President Nayib Bukele, explained why Bitcoin continues to collapse now despite the main bullish drivers. Among them are MicroStrategy’s recent frequent BTC purchases.
After falling from almost $102,000 to just under $93,000 between January 7 and 9, the world’s leading cryptocurrency Bitcoin has regained the $95,700 level and is moving in a range near $95,000 . Over the past 24 hours, BTC has lost 2.57% and is changing hands at $92,933 as of this writing. The main reasons for this long correction are recent geopolitical developments, especially the statements of the newly elected US president and his ally and crypto lover, Elon Musk.
Keizer sheds light on Bitcoin hash rate versus 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 again recently, Keizer recommended User X to look into the Bitcoin hash rate. “The price of Bitcoin doesn’t tell you anything,” he added.
Keizer’s reference to the BTC hash rate implies that this metric can say much more about the health and safety of Bitcoin at the moment rather than how its price is fluctuating. On January 12, the BTC hash rate saw a notable increase of 24.78% from the previous day, reaching 939.75 million terahashes per second (TH/s). In turn, Bitcoin mining difficulty also increased that day, now standing at 110.45 trillion.
The difficulty level adjusts every two weeks and ensures that miners take another 10 minutes to produce a new Bitcoin block, ensuring the health and stability of the network. A rise 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 Whale BTC Activity Plunges
According to figures shared by cryptocurrency analyst Ali Martinez, the number of large Bitcoin transactions has seen a drastic decline over the past 30 days. This measure fell 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.
