Momentarily, as Bitcoin halving took place on May 11 , the optics of all spectators are fixed on Bitcoin even closer than before in an attempt to predict or estimate how it is going to behave in the future. However, at this moment Bitcoin reveals an inflationary risk that is coming from the gap in the number of bitcoin traded on the marketplace versus the actual number of coins being generated by miners.
What statistics say
According to recent data, the hashrate after the Bitcoin halving hit the year’s lowest level, but showed a noticeable improvement by the end of May.
Bitcoin Hashrate historical chart. Source: BitInfoCharts
This reflects how the network productivity was affected after halving – the less the hashrate is, the lower number of bitcoin can be mined within a certain period of time. Lower network productivity may seem discouraging for miners, often inducing them to drop out and seek for a better shot elsewhere.
This, in turn, leads to a lower number of coins being produced. That’s what was revealed by a market pundit @_ConnerBrown_, who noted in his tweet that currently there is 673 bitcoin less in circulation than what is generated by miners.
This past week miners have sold 673 more bitcoin than were generated. We are seeing capitulation from inefficient miners, but prices are holding steady. What do you think happens when these miners are finally shaken out?