Bitcoin Hashrate Falls Off, Miners Expecting Pause In Bull Run?
On-chain data shows that Bitcoin hashrate has been declining recently, which may indicate that miners may not believe that the operation of the asset will continue.
Bitcoin mining hash rate has dropped since all-time highs
this”Computing power” refers to a metric that tracks the total computing power of miners currently connected to the Bitcoin network. The value of this metric is expressed in hashes per second (H/s) or the larger and more practical Terahashes per second (TH/s ) to measure.
When the value of this indicator increases, it means that new miners are joining the network and old miners are expanding their mining farms. This trend means that blockchain is a lucrative opportunity for these chain validators.
On the other hand, the declining indicator suggests that some miners have decided to disconnect their equipment from the network, possibly because they can no longer break even.
Now, here is a chart showing the trend of the seven-day average of Bitcoin mining hashrate over the past year:
As shown in the chart above, Bitcoin’s 7-day average hash rate surged earlier and hit a new record. However, the metric has declined since peaking at around 755 million TH/s earlier this month.
The early upward trend in this indicator is due to the positive price movement that the asset has been enjoying, as price is directly related to the asset miner income.
These on-chain validators earn income in two ways: transaction fees and block subsidies. The former depends on traffic conditions and can change dramatically from day to day. The latter, on the other hand, has very specific limitations.
The block subsidy remained fixed to the BTC value for about four years, and finally something called halved Just cut it in half. These rewards are also issued at a more or less fixed rate, meaning that miners’ daily block subsidy earnings in Bitcoin always remain fairly predictable.
However, one variable that is free to change is the dollar value of these rewards. Whenever the price goes up, miners’ block subsidy income goes up too. This is why hashrate tends to grow during bullish periods.
Bitcoin has been exploring new highs recently, but interestingly, hashrate has been silent. The metric is around 723 million, which represents a drop of more than 4% since the peak. This trend may indicate that miners expect the current rally to face obstacles.
bitcoin price
As of this writing, Bitcoin price is around $91,900, up more than 8% in the past seven days.
