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Data shows the Bitcoin mining hashrate has continued its unstoppable rise recently as it has set another new all-time high (ATH).
Bitcoin Hashrate Rise May Suggest Miners Are Gearing Up For Next Bull Run
The “mining hashrate” is a metric that keeps track of the total amount of computing power that’s connected to the Bitcoin blockchain right now. The metric is measured in terms of “hashes per second” (H/s), where a “hash” is basically a function the BTC miners have to perform on the network.
As the cryptocurrency’s hashrate has grown quite large by now, much larger units like terahashes per second (TH/s) or exahashes per second (EH/s) are used instead these days.
The hashrate can provide as a look into the interest that the miners have in the cryptocurrency right now. When the indicator’s value goes up, it means that the blockchain appears like an attractive venue for these chain validators, so they are expanding their facilities, and/or new miners are joining in.
On the other hand, the metric decreasing can be a sign that some of the miners are no longer finding Bitcoin attractive to mine, so they are ditching the network.
Now, here is a chart that shows the trend in the 7-day average Bitcoin mining hashrate over the past year:
The 7-day average value of the metric has been in a constant uptrend since a while now | Source: Blockchain.com
As displayed in the above graph, the 7-day average Bitcoin mining hashrate has observed some sharp growth during the last few weeks and has been setting ATH after ATH.
Some of this rapid rise has naturally come after the latest rally in the cryptocurrency’s price towards the $35,000 level, but a lot of it actually came before the rally happened, when BTC was still inside its rut between August and October.
On the BTC network, the block rewards, which serve as the primary revenue stream for the miners at the moment, remain fixed in BTC value (except for during the halvings), so the USD value of these rewards dictates how much revenue these miners are currently raking in.
When the asset’s price goes up, so does the value of these rewards, and hence, the income of the miners. Because of this reason, it’s not surprising to see the hashrate rise during rallies, but the fact that the recent growth had preceded this run could suggest the miners have been pretty optimistic about BTC recently.
These chain validators may be expanding their facilities in anticipation of a bull run. So far, their bet might have worked out, as the hashrate increase they did during the recent low prices would be paying off well now that the asset has seen a considerable uplift.
Bitcoin has registered some drawdown in the past day as the asset has now slipped towards the $34,600 mark.
Looks like the value of the coin has been going down recently | Source: BTCUSD on TradingView
Featured image from Brian Wangenheim on Unsplash.com, charts from TradingView.com, Blockchain.com