Quite a number of changes have been made in the Bitcoin ecosystem and network following the halving event. Miners on the Bitcoin network are yet to adapt to the change in mining rewards.
According to Glassnode, a pioneer on-chain market analytical platform, Bitcoin has rate has dropped by 40%, just after the halving event.
About 40 exahashes per second (EH/s) of Bitcoin’s computing power has been lost after the Bitcoin hash rate reached its all-time high before halving. That is equivalent to about 3 million older-generation mining machines.
This can be linked to the historical halving event that slashed miner’s reward from 12.5 to 6.25 bitcoin per block.
While the drop in reward made a number of miners pull out, the decrease in difficulty will give miners who are still in action more opportunity, especially if they have sophisticated equipment and cheaper electricity to mine with.
Bitcoin Open Interest Spikes Above 100K BTC
Su Zhu, the CEO of Three Arrows Capital, recently announced via a tweet that Bitcoin futures open interest has increased rapidly on CME as the Bitcoin options open interest has gone past 100,000 BTC ($976,3 mln) on Debrit, a Chicago-based cryptocurrency exchange.
Impressive interest on CME as well lately https://t.co/gpxKwmoAca
— Su Zhu (@zhusu) May 20, 2020
In the same vein, Vaneck director Gabor Gurbacs shared that CME Bitcoin futures open interest reached its daily all-time high. Gabor went further to implore CME to give the chart the widest publicity in order to boost BTC adoption.
Major surge in the Bitcoin open interest and futures were recorded on two important platforms – a positive sign for Bitcoin as the cryptocurrency keeps struggling to break the $10,000 resistance.
The recorded progress of options and futures signals that institutional investors may be entering the Bitcoin market, hence increase in adoption.
However, researcher Philip Swift has urged all and sundry to buy Bitcoin before hedge fund guys invest into the market.