Bitcoin miners rejoice in their gains derived from the transaction rates which reached a new monthly peak of 2,842%, according to an analysis released on September 7th. This happiness is taking place despite the current pessimism in the market in general.

Transaction Count Rose Dramatically in the Last Week

There are two main sources from which miners obtain their income. The first one is the rates paid by users whose transactions are included in the block. The second one is a fixed amount of BTC coins recently coined by each mining block. This shows a clear relationship between the gains of the miners and the traffic of the Bitcoin network.

Dynamic Surrounding Hash Rate and Block Intervals

The dynamic surrounding hash rate and block intervals are other elements that may help us comprehend the increase in transaction rates. Since the beginning of the week, the network’s hash rate decreased. A fall in the hash rate meant that miners’ efficiency in discovering the precise block decreased resulting in high block intervals.

Recently, the amount of transactions not confirmed in the line shot at 560,810 which led users to offer higher rates to jump the tail.

What follows Bitcoin mining?

The high rates were a good omen for the existing generation of miners, as well as for those who sought to explore it as a practical business example to follow. Because of the continuous and fast Bitcoin blockchain expansion, a constant influx of miners would be needed to keep the network safe and decentralized.

Analyst Warns about an Imminent Liquidity Disaster in ETF Hopes

Recently Bitcoin (BTC) has warned cryptocurrency investors, and the Senior Macroestratega of Bloomberg Intelligence, Mike McGlone, issued a severe warning in the middle of the renewed hope for funds listed on the stock exchange (ETF).

Notwithstanding the resistance of the BTC and in a financial panorama characterized by monetary policies that change rapidly, the current price drop may presage an imminent liquidity catastrophe.

Awkward Posture Despite the Expectations of the ETF

Even though the approval of US spot ETFs is likely to take place and the traditional stock market continues to demonstrate a noteworthy strength, Bitcoin went through a reasonably unforeseen fall during the third quarter before September 6.

McGlone wrote on his X account “ZIRP in Reverse, Cryptos in the Middle and #Bitcoin Tilting Down – Cryptos came of age during an unprecedented period of zero-interest-rate polices that’s reversing rapidly, with implications for prices. Down about 15% in 3Q to Sept. 6 despite US spot ETFs moving closer to approval and a buoyant #stockmarket, Bitcoin may be telling us something. The 24/7 traded crypto might be a leading indicator for a severe economic reset worthy of the extraordinary pump — and then dump — in liquidity, reflected in Bloomberg Economics’ US recession probability model in 12 months at 100% and deteriorating economic growth in China and Europe.”

This may serve as an omen of an imminent economic restart characterized by extreme fluctuations in liquidity. Recessions typically entail falling risk assets and central bank easing. The former may be in the early days due to the latter appearing distant, except in China. The Bloomberg Galaxy Crypto Index appears to have met a ceiling at its 2017 peak.

McGlone suggests that Bitcoin’s rapid growth happens together with a time of historically low-interest rates.

It is high time to keep a close eye on your investments.

By Leonardo Perez


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