Emily Walker
Recent on-chain statistics indicate that the Bitcoin Hashrate has reached a record high, coinciding with the cryptocurrency’s ongoing rise to new all-time price peaks.
Recent Surge in 7-Day Average Bitcoin Mining Hashrate
The term “Hashrate” denotes a measurement that reflects the total computing power of Bitcoin miners connected to the network. It’s quantified in hashes per second (H/s) or the more commonly used terahashes per second (TH/s).
Miners apply their computational abilities to solve specific mathematical challenges, with the incentive of adding the next block to the Bitcoin chain. However, they do not operate together; instead, they compete individually to solve these puzzles first to earn rewards. Despite this competitive nature, the overall Hashrate serves as a valuable metric, providing insights into the conditions of the mining community as a whole.
An increase in this indicator suggests that more computational power is being added to the network, reflecting a potentially profitable environment for miners. Conversely, a decline could indicate that some miners are exiting the network due to unprofitable conditions.
Below is a chart illustrating the trend of the 7-day average Bitcoin Hashrate over the past year:
The graph indicates a recent significant rise in the 7-day average Bitcoin Hashrate, suggesting that miners are scaling their operations. At the beginning of the month, the Hashrate hit a high of 755 TH/s; however, despite Bitcoin’s price climbing to new heights thereafter, the Hashrate experienced a temporary downturn.
Bitcoin miners derive their income primarily from two sources: transaction fees and block subsidies, with the latter typically accounting for the majority of revenue. The block subsidy remains constant in BTC terms, varying only during Halving events approximately every four years, which reduces its value by half. Consequently, changes in miner revenue are largely dependent on fluctuations in Bitcoin’s price.
During bullish market phases, miner profitability increases, prompting higher investments in mining operations. The earlier trend of a diminishing Hashrate was unexpected, as it suggested a lack of confidence in the sustained price increases. Nevertheless, with Bitcoin’s recent price surge nearing the $100,000 mark, the Hashrate is back to its upward trajectory, indicating renewed investment by miners.
Following this latest upward trend, the 7-day average Bitcoin Hashrate has reached over 768 TH/s.
Current Bitcoin Price
Currently, Bitcoin is trading at approximately $98,000, reflecting an increase of over 9% in the past week.