Data shows that the bitcoin Hashrate has been experiencing a rapid uptrend recently, an indication that miners expect the asset's latest rally to continue.
bitcoin 7-day average hashrate has been exploring new highs recently
According to data from Blockchain.comThe btc network has seen its Hashrate skyrocket recently. The “Hashrate” here 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 that new miners are joining the network and old ones are expanding their farms. Such a trend implies that the chain looks like a profitable venture for these chain validators.
On the other hand, the drop in the indicator suggests that some miners have decided to disconnect their rigs from the network, potentially because they no longer find btc mining attractive.
Now, here is a chart showing the trend in the 7-day average of the bitcoin Hashrate over the past year:
<img data-recalc-dims="1" decoding="async" class="alignnone wp-image-334652 size-large aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/10/Bitcoin-Hashrate-Shows-Rapid-Rise-to-New-Highs-–-Bullish.png" alt="bitcoin Mining Hashrate” width=”980″ height=”414″ srcset=”https://bitcoinist.com/wp-content/uploads/2024/10/chart_8877fe.png?w=1388 1388w, https://bitcoinist.com/wp-content/uploads/2024/10/chart_8877fe.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/10/chart_8877fe.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/10/chart_8877fe.png?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/10/chart_8877fe.png?w=750 750w, https://bitcoinist.com/wp-content/uploads/2024/10/chart_8877fe.png?w=1140 1140w” sizes=”(max-width: 980px) 100vw, 980px”/>
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, bitcoin's 7-day average Hashrate has seen a sharp rise over the past few weeks and has established a new all-time high (ATH).
The metric is traditionally measured in terms of hashes per second (H/s), but at this point, the btc network has grown so much that much larger terahashes per second (TH/s) are used instead. The latest ATH of the indicator has been around 735 TH/s, almost 6% higher than the record of 694 TH/s set at the beginning of the month.
The rapid growth that Hashrate has experienced recently naturally suggests that miners have been confident in the cryptocurrency. Interestingly, these chain validators have made these expansions even though the network difficulty has seen an increase in the last adjustment.
As data from bitcoin/difficulty-chart” target=”_blank” rel=”noopener nofollow”>CoinWarz As an example, this increase in difficulty has been the second in a row that the chain has gone through.
<img data-recalc-dims="1" loading="lazy" decoding="async" class="alignnone wp-image-334747 size-large aligncenter" src="https://technicalterrence.com/wp-content/uploads/2024/10/1730210902_67_Bitcoin-Hashrate-Shows-Rapid-Rise-to-New-Highs-–-Bullish.png" alt="bitcoin Difficulty” width=”980″ height=”495″ srcset=”https://bitcoinist.com/wp-content/uploads/2024/10/chart_4ec1fc.png?w=1090 1090w, https://bitcoinist.com/wp-content/uploads/2024/10/chart_4ec1fc.png?w=640 640w, https://bitcoinist.com/wp-content/uploads/2024/10/chart_4ec1fc.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2024/10/chart_4ec1fc.png?w=980 980w, https://bitcoinist.com/wp-content/uploads/2024/10/chart_4ec1fc.png?w=750 750w” sizes=”(max-width: 980px) 100vw, 980px”/>
The trend in the Difficulty over the last few weeks | Source: bitcoin/difficulty-chart" target="_blank" rel="noopener nofollow">CoinWarz
“Difficulty” refers to a feature of the bitcoin blockchain that controls how difficult miners would find the task of mining btc. The difficulty exists in limiting the rate at which miners receive the block subsidy, which serves as the only means of producing new btc, so that inflation of the asset can be controlled by restricting it.
Every time miners increase the Hashrate, they temporarily become faster at their task and receive a block subsidy at a faster rate. To counteract this, the network increases its Difficulty at the next bi-weekly adjustment, returning miners to the desired speed.
This means that no matter how much investment miners make, they will never be able to earn more than before. The only way expansions pay off is if the price of btc goes up, as the value of your btc rewards would naturally increase as well.
Given the recent aggressive rise of the Hashrate, despite the difficulty in setting new records, it seems that miners believe that the current rally will continue.
btc Price
bitcoin had broken through the $69,000 level today, but the asset seems to have seen a pullback as its price has now dropped to $68,700.
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Looks like the price of the coin has surged during the last 24 hours | Source: BTCUSDT on TradingView
Dall-E Featured Image, CoinWarz.com, Blockchain.com, TradingView.com Chart
