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In this new format, IntoTheBlock will be looking at key weekly developments in the crypto space from a blockchain perspective. Leveraging blockchain’s transparent nature, IntoTheBlock is able to extract valuable insights providing a data-driven analysis into news about the top cryptocurrencies. 

As headlines shifted to Bitcoin’s third halving, this week we will be analyzing its impact on some of the most relevant blockchain metrics, including hash rate, and price and network growth, among others.

As covered by CryptoSlate, BTC suddenly dropped by $2,000 over the weekend right before the halving, losing more than $20 billion from its market capitalization. But despite Bitcoin’s brief freefall, CryptoSlate states that there are strong fundamentals for the long-term health of Bitcoin. 

According to CryptoSlate, the evidence for Bitcoin’s future strength can be seen when looking at its surging hash rate, which just recently hit a fresh all-time high, marking an 8,100% increase since the previous BTC halving in 2016.

This increase in hash rate can be interpreted as a positive signal, as more mining power makes the Bitcoin blockchain more secure and indicates miners are looking to continue mining the cryptocurrency despite the block reward halving.

As seen in the graph above, over the last month, Bitcoin’s hash rate has continued its steady climb year-to-date, despite dropping by approximately 7% right after the halving.

As covered by Crypto Globe, and as stated above, Bitcoin’s price dropped 12.2% (from about $9,483 to $8,327) between 00:05 UTC and 00:20 on Sunday (May 10).

This drop can also be reflected using our IntoTheBlock’s Mid-Price indicator, which shows that from May 9 to May 10, the price of Bitcoin dropped 9.14%. Bitcoin’s price has since recovered back to the realm of $8,900.

On May 10, IntoTheBlock data covered by CryptoGlobe showed that there was a convergence of six proprietary on-chain and market signals pointing towards a “mostly bearish” reading of Bitcoin, with no bullish or even neutral signals coming up.

After the much-discussed price plunge on Saturday, we at IntoTheBlock were able to identify a bearish trend for Bitcoin.

Why?

This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. 

The views and opinions expressed in this article are the author’s own and do not necessarily reflect those of CoinMarketCap.

The post This Week in Crypto: A Data Perspective appeared first on CoinMarketCap Blog.

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