On-chain data shows that bitcoin Hashrate has risen to a record value as the coin's price continues to explore new all-time highs (ATH).
bitcoin 7-Day Average Mining Hashrate Has Soared Recently
“Hashrate” refers to a metric that tracks the total amount of computing power that bitcoin miners as a whole currently have connected to the network. Its value is measured in units of hashes per second (H/s), or the larger and more practical terahashes per second (TH/s).
Miners use their computing power to solve certain mathematical puzzles, and the reward is the opportunity to add the next block to the chain. However, the collective computing power connected to the network never works together.
Rather, miners compete against each other using their individual Hashrate to be the first to solve these puzzles and receive compensation. However, despite this fact, the “total” Hashrate is still a useful indicator, as it provides insight into the situation of these validators as a whole.
When the value of this metric increases, it means that miners are connecting additional power to the network. This trend suggests that this group considers btc mining to be a profitable venture.
On the other hand, the drop in the indicator implies that some of the miners have decided to leave the blockchain, potentially because they are no longer earning a positive return.
Now, here is a chart showing the trend in the 7-day average bitcoin Hashrate over the past year:
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The 7-day average value of the metric appears to have been going up in recent days | Source: Blockchain.com
As shown in the chart above, bitcoin's 7-day average Hashrate has seen a rapid increase recently, implying that miners have been expanding their facilities.
At the beginning of the month, the metric had set a new record of 755 TH/s, but although the cryptocurrency had reached new highs in the following weeks, the metric had recorded a drop.
bitcoin miners earn their income from two sources: transaction fees and block subsidy, but the latter typically contributes to the vast majority of their income, so the former can be ignored when trying to measure miners' profitability.
The block subsidy remains fixed in the btc value (except during Halvings, events that occur approximately every four years where it is permanently reduced by half) and is awarded at a nearly constant pace of time. As such, the only way miners' income can change is when the price of btc changes.
Bullish periods naturally lead to higher profitability for these chain validators, so they tend to invest more in their farms. That is why the trend observed at the beginning of the month was surprising.
Miners may not have been too confident in the bull run at the time, but with the latest leg up to prices close to the $100,000 level, the Hashrate appears to be back on track, indicating that this cohort has joined the upturn.
Following the latest surge, bitcoin's 7-day average Hashrate has reached a new record high of over 768 TH/s.
btc Price
At the time of writing, bitcoin is trading around $98,000, up more than 9% over the past week.
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Looks like the price of the coin has been marching up over the last few days | Source: BTCUSDT on TradingView
Dall-E Featured Image, Blockchain.com, TradingView.com Chart
