On-chain data shows that the Bitcoin Hashrate has recently set a new all-time high (ATH), indicating that miners remain optimistic about the future of Bitcoin (BTC).
7-Day Average Bitcoin Hashrate Achieves A New Record
The “Hashrate” is a crucial metric that tracks the total amount of computing power miners have connected to the Bitcoin network for mining purposes.
A rise in this indicator suggests that new miners are joining the network, or existing ones are expanding their operations. This trend implies that BTC mining continues to be viewed as a profitable venture for these validators.
Conversely, a declining hashrate indicates that some miners may be disconnected due to an unfavorable mining environment, reflecting diminished profitability.
Below is a chart from Blockchain.com illustrating the trend in the 7-day average Bitcoin Hashrate over the past year:
The above chart reveals that the 7-day average Bitcoin Hashrate experienced a sharp decline in February, coinciding with a price downturn in the cryptocurrency market. This correlation is not surprising, as miners are heavily influenced by the asset’s value in their revenue equations.
Miners earn income primarily through transaction fees and block subsidies. The latter, which rewards them for solving blocks on the network, constitutes the bulk of their revenue and is consistent in BTC value, affected mainly by the cryptocurrency’s USD price.
During periods of Bitcoin price increases, miner income rises, prompting investments back into mining facilities. However, in bearish markets, miners may scale back their operations.
Interestingly, although miners initially reacted to the February market crash as expected, they swiftly shifted their strategies. The chart indicates that the hashrate began to grow again in March, culminating in a new ATH by the end of the month.
Despite this new record in hashrate, Bitcoin continues to experience a bearish consolidation. The persistent expansion by miners suggests a belief in an eventual bullish trend for the asset.
Ultimately, it remains to be seen whether this gamble will pay off for BTC miners.
BTC Price
As of this writing, Bitcoin is trading around $85,100, reflecting a 3% decrease over the past week.
