The Bitcoin price suffered a significant setback last week, but surprisingly, hardly anyone seems seriously concerned. Between March 28 and 31, the price fell by more than $6,000 – yet various signals point to a buying opportunity rather than panic.
Hashrate at a Record High
The computing power of the Bitcoin network – the so-called hashrate – continues to rise inexorably, reaching a peak of 856.2 million terahashes per second on March 28. Miners are hardly fazed by the recent price drop: they continue to expand their infrastructure and sell virtually nothing. On March 30, only 125 Bitcoin flowed from miners to exchanges, even though daily production is around 450 BTC.
Institutional Interest Increases
There are also positive signs on the institutional side. MARA Holdings announced it intends to sell up to $2 billion worth of shares to buy more Bitcoin. GameStop announced in the same week that it intends to convert part of its cash reserves into Bitcoin and stablecoins. These aren’t obscure funds, but rather publicly traded companies that are consciously choosing to invest in crypto.
According to data from Glassnode, the number of Bitcoin on exchanges has now fallen to its lowest level in six years: 2.64 million BTC. Investors are therefore withdrawing their coins from trading platforms in large numbers – a clear sign that they do not intend to sell in the short term.
ETFs Remain Remarkably Stable
While one would normally expect outflows from institutional products during a price correction, US spot ETFs remained surprisingly quiet. Between March 27 and 28, net outflows were almost zero. Large investors are apparently unfazed.
Although its correlation with the stock markets is often pointed out, Bitcoin remains strong: Over the past six months, BTC has risen by 36%, while the S&P 500 has fallen by 3.5% over the same period. At the same time, the US dollar is losing strength, and gold reached a new all-time high of over $3,100 on March 31.
All’s well behind the scenes
The recent decline may feel like a warning sign, but beneath the surface, the network is running at full speed. Miners are barely selling, institutional investors are staying invested, and supply on exchanges is drying up. Is $80,000 a lot for one Bitcoin? That’s largely a matter of perspective.
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