Bitcoin Hashrate Sets New Record—Do Miners Think Bottom Is In?

On-chain data shows the Bitcoin Hashrate has set a new all-time high (ATH) recently, a potential sign that miners are still hopeful about BTC’s future.

7-Day Average Bitcoin Hashrate Achieved A New Record Recently

The “Hashrate” refers to a metric that keeps track of the total amount of computing power that the miners have connected to the Bitcoin network for the purpose of mining.

When the value of this indicator rises, it means new miners are joining the network and/or old ones are expanding their facilities. Such a trend implies BTC mining is looking a profitable venture to these chain validators.

On the other hand, the metric registering a decline suggests some of the miners have decided to disconnect their machines, potentially because they are no longer finding BTC mining to be attractive.

Now, here is a chart from Blockchain.com that shows the trend in the 7-day average Bitcoin Hashrate over the past year:

As is visible in the above graph, the 7-day average of the Bitcoin Hashrate observed a sharp plunge in February as the cryptocurrency’s price itself went through a drawdown. The Hashrate following in the price’s footsteps isn’t anything new, as the miners depend on the asset’s value for their revenue.

Miners make their income through two sources: transaction fees and block subsidy. The latter, which they receive as compensation for solving blocks on the network, makes up for the majority of their revenue. This reward is constant in BTC value and is also given out at a nearly constant rate of time, so its value is only dependent on the cryptocurrency’s USD price.

Whenever Bitcoin rallies, miner income goes up, so they often invest into their facilities. In bearish periods, however, they may respond by pulling back on their machines instead.

Interestingly, while miners did initially react to the crash as may be expected, they were quick to reverse course. From the chart, it’s apparent that the indicator’s value observed growth during March and towards the end of the month, it was even able to set a new all-time high (ATH).

While this new record has come for the Hashrate, Bitcoin has maintained its bearish consolidation. It’s possible that the miners are continuing to expand regardless of this trend because they believe the asset would end up witnessing a bullish outcome in the long term.

It only remains to be seen, though, whether this gamble would work out for the BTC miners or not.

BTC Price

At the time of writing, Bitcoin is floating around $85,100, down around 3% in the last seven days.