Bitcoin fell 3% in less than an hour in a “healthy” price correction. In this article, we will explore the current pricing of BTC and the main crypto news, including Ethereum (ETH) updates.
After a strong recovery the previous day, the main cryptocurrency showed volatility on Wednesday, maintaining its trademark. With three consecutive days of swings above 3%, the consistent recovery movement of Bitcoin is positive. A larger correction would be healthy, considering that the cryptocurrency has accumulated an impressive 86% increase in the year.
Bitcoin mining activity is on the rise again, with the hash rate and mining difficulty set to reach new records. After facing reduced profit margins during the bear market, miners are recovering alongside the increase in the BTC/USD price, which rose 70% in just the first quarter of 2023.
The Bitcoin mining difficulty has reached new all-time highs in recent months, which is an indicator of competition for block subsidies. Next week, the difficulty is expected to increase by about 2.1%, reaching 48.91 trillion – 13 trillion more than at the beginning of the year. This shows that the mining market is recovering significantly and that miners are investing in more resources to maximize their profits.
After reaching resistance at $30,900, as predicted in previous analyses, BTC/USD began a consolidation movement with high volatility in the same price range seen in May/June last year. The price corrected to support at $28,300, but now seems to be stabilizing at that level. A consolidation period similar to last year’s is expected before the market resumes a directional upward movement. Tracking price action evolution is essential to evaluate future movements and define Bitcoin investment strategies.
Ethereum: ETH Deposits
For the first time since the Shapella hard fork on April 12, ETH deposits in the Ethereum Beacon Chain have exceeded withdrawals. Although more than 1 million ETH has been withdrawn since then, many addresses have made new deposits, resulting in a positive balance. According to Nansen, an on-chain analysis company, deposits have outpaced withdrawals, with a volume of 124,000 ETH deposited on April 17, almost twice the total volume of withdrawals of 64,800 ETH.
The Shapella hard fork was a critical update for Ethereum, unlocking millions of ETH and representing a risk of massive selling pressure. However, most validators are redepositing their stakes in staking. With the Ethereum Beacon Chain approaching 4 million ETH in staking, the update seems to have been successful in keeping validators engaged and incentivized to maintain network security.
After the Shapella update, ETH/USD recorded a gain of 13.55% in just four days, indicating that the update was successful. However, Bitcoin continues to dominate the market and pull Ethereum down, causing the cryptocurrency to give back almost all of its gain from the last week. Despite this, the trend continues to be upward, with Ethereum being supported by a green trend line.
In summary, the cryptocurrency market has presented several significant movements in recent days. Bitcoin, despite its volatility, has shown consistency in its recovery, indicating a positive scenario for investors. Ethereum, with the Shapella update, has presented significant appreciation and a resumption of ETH deposits in the Beacon Chain. In addition, Bitcoin mining has recorded a significant increase, showing that the mining market is recovering.