Data Analysis: How does the mass migration of Bitcoin miners affect the crypto market?

This could be one of the most important moments in Bitcoin’s history. Due to new regulations, the domestic mining sector is being forced to relocate. These entities are responsible for securing the network, and their actions can affect the entire crypto industry.
As a result, selling pressure has increased over the past few months, while Bitcoin mining difficulty and hash rate have taken a hit as more miners cease operations.
Glassnode Insights analyst Checkmate took a deeper look at the impact this event had on the crypto industry.
CoinWorld-Data Analysis: How does the mass migration of Bitcoin miners affect the crypto market?
First, he highlighted the rise in volatility in specific mining metrics: hash rate, block interval, and output.
Analysts point out that this difficulty adjustment of the Bitcoin network is the most significant in the past decade, with the average hash rate of the mining industry at the level of the difficult period of 2016.
Furthermore, based on the average block interval that fluctuated over the past 24 hours, the Bitcoin network has experienced its most difficult average block interval since Bitcoin was launched in 2009.
Checkmate said: "This is the slowest average block time since the crypto era in 2009, when Bitcoin did not even have a market price. The previous longest average block time was 1774.5 seconds, which occurred at the bottom of the last pullback before the 2017 blowout."

Based on this, analysts estimate that the network reached a rate of 180 EH/s at one point. Overall, it lost between 38% and 49% of its hash power, causing the stable value to climb from 88 EH/s to 110 EH/s before the local low of 65 EH/s.
So could the migration of Bitcoin miners be pointing to a bullish outlook?
Contrary to the views spread by some experts during this BTC price correction, Checkmate claims that the market “has not seen a significant increase in miner spending behavior” and that the speed of hash rate recovery can be used to measure miners’ spending behavior.
Checkmate believes that if the market can recover quickly, we can expect a reduction in sales by Bitcoin miners. They can find new places to build their operations, sell hardware, or find other ways to cover their costs.
This could give Bitcoin some room to recover and return to its previous highs.
Conversely, if the hash rate recovery period is prolonged, miners may have more incentive to reduce their Bitcoin holdings and cover their operating costs.
“For almost all of Bitcoin’s history, miners have sold more Bitcoin than they have accumulated, so supply has always been in a structurally downward trend,” Checkmate added.
The “Difficulty Ribbon,” an indicator that measures changes in network difficulty in relation to miner selling pressure, has good news for bulls, with the metric returning to levels seen before the 2018 bear market.
CoinWorld-Data Analysis: How does the mass migration of Bitcoin miners affect the crypto market?
Checkmate stressed that a reversal in the difficulty factor is an “extremely rare event.” However, it usually occurs at the end of a bear market, or in this case, could signal the end of the decline in Bitcoin’s price over the past two months.
Such behavior has historically been associated with strong bull market reversals as miners shut down machines that cost more to operate than to produce.
At the time of writing, Bitcoin lost support at the $35,500 area and was trading at $33,611.
The crypto market is losing money across the board. Based on the current support level, Bitcoin prices may fall further. (Blockchain Knight)