Data shows the Bitcoin Hashrate has been experiencing a rapid uptrend recently, a touch that miners expect the asset’s latest rally to proceed.
7-Day Average Bitcoin Hashrate Has Been Exploring Latest Highs Recently
Based on data from Blockchain.com, the BTC network has seen its Hashrate shoot up recently. The “Hashrate” here refers to an indicator that keeps track of the entire computing power the miners have currently connected to the Bitcoin blockchain.
When the worth of this metric observes an increase, it means latest miners are joining the network, and old ones are expanding their farms. Such a trend implies that the chain is looking like a profitable enterprise to those chain validators.
Alternatively, the indicator happening suggests some miners have decided to disconnect their rigs from the network, potentially because they aren’t any longer finding BTC mining attractive.
Now, here’s a chart that shows the trend within the 7-day average of the Bitcoin Hashrate over the past 12 months:
The 7-day average value of the metric appears to have seen a rapid increase in recent days | Source: Blockchain.com
As displayed within the above graph, the 7-day average Bitcoin Hashrate has witnessed a pointy surge in the course of the previous couple of weeks and has set a latest all-time high (ATH).
The metric is traditionally measured by way of hashes per second (H/s), but at this point, the BTC network has grown a lot that a much larger terahashes per second (TH/s) is used as a substitute. The newest ATH of the indicator has been around 735 TH/s, almost 6% higher than the 694 TH/s record set earlier within the month.
The rapid growth that the Hashrate has seen recently naturally suggests that the miners have been confident concerning the cryptocurrency. Interestingly, these chain validators have made these expansions although the network Difficulty has seen an increase in the most recent adjustment.
As data from CoinWarz shows, this Difficulty increase has been the second consecutive that the chain has passed through.
The trend within the Difficulty over the previous couple of weeks | Source: CoinWarz
The “Difficulty” refers to a feature on the Bitcoin blockchain that controls how hard the miners would find the duty of BTC mining. The Difficulty exists in limiting the speed at which miners receive block subsidy, which serves because the only means of manufacturing latest BTC, so the asset’s inflation could be controlled by restricting it.
Each time miners increase the Hashrate, they temporarily change into faster at their task and receive block subsidy at a faster rate. To counteract this, the network raises its Difficulty in the subsequent biweekly adjustment, bringing miners back to the specified speed.
Because of this regardless of how much investment the miners make, they will never earn greater than they did before. The one way the expansions repay is that if the BTC price goes up for the reason that value of their BTC rewards would also naturally increase.
Given the aggressive increase within the Hashrate recently, despite the Difficulty setting latest records, it might appear that the miners imagine the present rally will proceed.
BTC Price
Bitcoin had breached beyond the $69,000 level earlier today, however the asset appears to have seen a pullback as its price is now all the way down to $68,700.
Looks like the worth of the coin has surged in the course of the last 24 hours | Source: BTCUSDT on TradingView
Featured image from Dall-E, CoinWarz.com, Blockchain.com, chart from TradingView.com