Data shows that the Bitcoin Hashrate has been on a rapid uptrend lately, an indication that miners expect the asset’s latest rally to continue.
The seven-day average Bitcoin hashrate recently discovered new highs
According to data from Blockchain.comthe BTC network has recently seen its Hashrate increase. The “Hashraat‘This refers to an indicator that tracks the total computing power that miners currently have connected to the Bitcoin blockchain.
When the value of this metric increases, it means new miners are joining the network and old ones are expanding their farms. Such a trend implies that the chain appears to be a profitable venture for these chain validators.
On the other hand, the declining indicator indicates that some miners have decided to disconnect their platforms from the network, possibly because they no longer find BTC mining attractive.
Here is a chart showing the trend in the seven-day average of the Bitcoin Hashrate over the past year:
The 7-day average value of the metric appears to have seen a rapid increase in recent days | Source: Blockchain.com
As shown in the chart above, the seven-day average Bitcoin hashrate has witnessed a sharp increase over the past few weeks and has reached a new all-time high (ATH).
The metric is traditionally measured in terms of hashes per second (H/s), but currently the BTC network has grown so much that a much larger terahashes per second (TH/s) is used instead. The indicator’s latest ATH was around 735 TH/s, almost 6% higher than the record high of 694 TH/s set earlier this month.
The rapid growth that the Hashrate has seen recently obviously suggests that miners have confidence in the cryptocurrency. Interestingly, these chain validators have made these extensions even though the network difficulty saw an increase in the last adjustment.
As data from CoinWarz shows, this Difficulty The increase is the second in a row that the chain has experienced.
The trend in the Difficulty over the last few weeks | Source: CoinWarz
The “Difficulty” refers to a feature on the Bitcoin blockchain that determines how difficult the miners would find the task of BTC mining. The difficulty lies in limiting the speed at which miners receive block subsidiesthat serves as the sole means to produce new BTC so that inflation of the asset can be controlled by limiting it.
Whenever miners increase the Hashrate, they temporarily become faster at their task and receive block grants faster. To counter this, the network increases the difficulty on the next biweekly adjustment, bringing miners back to the desired speed.
This means that no matter how much investment the miners make, they can never earn more than before. The only way the expansions will pay off is if the BTC price rises, as the value of their BTC rewards would naturally rise as well.
Given the recent aggressive increase in Hashrate, despite difficulty setting new records, it appears that miners believe the current rally will continue.
BTC price
Bitcoin had crossed the $69,000 level earlier today, but it appears that its value has seen a pullback as the price has now fallen to $68,700.
Looks like the price of the coin has surged during the last 24 hours | Source: BTCUSDT on TradingView
Featured image from Dall-E, CoinWarz.com, Blockchain.com, chart from TradingView.com