Bitcoin’s price has taken a hit this week, dropping below $60,000 in time of writing.
The bigger picture isn’t that bad, Bitcoin has shown a slight net gain of 0.20% over the past month, so there is a balance between buying and selling pressures.
Hashrate is almost at all-time high
CryptoQuant reported on X that Bitcoin’s miner hashrate reaching up to 604 exahashes per second (EH/s) this past week.
This means a 6% rise from the lows of July 9 and places the hashrate just 2% below the network’s all-time high.
The report nalso otes that Bitcoin miners are enjoying better pay conditions compared to April, with daily mining revenues increasing by over 50% since early July.
This is pretty good news, and it has reduced the need for miners to sell their assets, as evidenced by the daily Bitcoin miner outflows, which have stayed between 5,000 and 10,000 BTC in the previous month.
This is a big drop from the 10,000 to 20,000 BTC range seen in early March when Bitcoin reached the $70,000 level.
Hashrate is a flexible metric
The Bitcoin hashrate is a measure of the total computational power used to mine and process transactions on the Bitcoin network.
It is a key indicator of miner confidence in Bitcoin, with a rising hashrate suggesting that miners believe in the profitability of mining Bitcoin at current or future prices.
If miners were to sell off their assets, it could drive Bitcoin’s price down further.
But if the competition becomes too hard, the more likely scenario could be a future decline in hashrate, as miners’ profitability heavily depends on Bitcoin’s price and network fees.
If there is no profit, they’re simply shutting down the machines.
Growing hashrate is a good sign
The current trends in Bitcoin mining signals that miners are pretty confident in the long-term profitability of Bitcoin.
If this trend continues, and many thinks it will, it could help stabilize Bitcoin’s price and possibly lead to a market rebound with rising prices.
On the other hand, if Bitcoin’s price continues to fall, miners may be forced to reduce their operations, leading to a decline in hashrate.
Have you read it yet? Ethereum selling spree is finally over after 80% drop in ETFs outflows?
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