Bitrabo Editorial
Recent on-chain data indicates that the Bitcoin Mining Hashrate is currently low, suggesting that miners may lack confidence in the potential for a Bitcoin price increase.
Bitcoin Mining Hashrate Stays Low
The “Mining Hashrate” is a measurement that tracks the overall computing power that miners contribute to the Bitcoin network. It is typically expressed in hashes per second (H/s), but nowadays, larger measurements like terahashes per second (TH/s) are often used due to their usefulness.
A rise in this metric points to more miners joining the network or existing miners expanding their operations, signaling a growing interest in Bitcoin mining. Conversely, a decline in hashrate can imply that some miners are pulling back, likely due to unprofitability in mining activities.
The graph below illustrates the 7-day average Bitcoin Mining Hashrate over the past year:
As shown in the chart, the Bitcoin Mining Hashrate reached an all-time high (ATH) earlier this month but quickly fell back to the lows recorded in August.
This sharp increase followed by a rapid decline might suggest that the previous surge in hashrate was not sustainable, especially in light of the declining spot price of BTC.
Miners primarily generate revenue through block subsidies and transaction fees, with block subsidies constituting the larger portion of their earnings. The Bitcoin blockchain maintains a steady block subsidy, which only changes during events known as Halvings, occurring every four years.
As a result, miner revenue is heavily influenced by Bitcoin’s price since the block subsidy remains static.
When the hashrate reached its ATH, Bitcoin’s price was declining at the same time, likely leading miners to scale back on their upgrades due to reduced revenue. Recently, while BTC’s price has seen an increase, the hashrate has persisted at lower levels, indicating that miners might be taking a more cautious approach or are skeptical about Bitcoin’s future performance.
This trend of miner hesitation may be validated by the recent downturn in cryptocurrency prices.
Current BTC Price
As of this writing, Bitcoin is trading at approximately $63,300, reflecting a decline of nearly 4% in the last 24 hours.