Pakinomist – Max Keiser, a prominent maximalist and currently BTC advisor to the President of El Salvador, Nayib Bukele, has shared his take on why Bitcoin continues to run now despite major bullish drivers. Among them is MicroStrategy’s recent frequent BTC purchases.
After falling from nearly $102,000 to just under $93,000 between January 7 and 9, the world’s primary cryptocurrency Bitcoin has regained the $95,700 level and has been moving in the range near $95,000. Over the past 24 hours, BTC has lost 2.57% and is changing hands at $92,933 at the time of writing. The main reasons for this long correction have been the recent geopolitical developments, especially the statements of the newly elected US president and his ally and crypto-lover Elon Musk.
Keizer focuses on Bitcoin’s hash rate over price
El Salvador’s President’s Bitcoin Advisor responded to a question from a BTC enthusiast on the X social media platform. Referring to his question about why Bitcoin’s price keeps falling despite MicroStrategy’s continuous BTC purchases announced over the past month and again recently, Keizer recommended that the X user look at the Bitcoin hash rate . “The bitcoin price tells you nothing,” he added.
Keiser’s reference to the BTC hash rate suggests that this metric may tell a lot more about the health and safety of Bitcoin at the moment rather than its fluctuating price. On January 12, the BTC hash rate saw a remarkable increase of 24.78% from the previous day, rising to 939.75 million Terahashes per second (TH/s). On the other hand, the Bitcoin mining difficulty also increased that day, and it now stands at 110.45 trillion.
The difficulty is adjusted every two weeks and ensures that miners still take 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 will likely ultimately have a positive impact on the Bitcoin price.
Major BTC whale activity crashes
According to figures shared by cryptocurrency analyst Ali Martinez, the number of large Bitcoin transactions has seen a drastic drop in the past 30 days. This metric has fallen by almost $52% – from 33,450 to 16,180.
Santiment clarified that this is a likely sign that major cryptocurrency whales are slowing down significantly in their trading activity.
