Recent on-chain data indicates that Bitcoin’s Mining Hashrate has surged significantly, reaching a record high even amidst market fluctuations.
Recent Surge in Bitcoin Mining Hashrate
The term “Mining Hashrate” denotes a measure of the total computing power utilized by Bitcoin miners on the network, commonly expressed in hashes per second (H/s), or in a larger unit, terahashes per second (TH/s).
A rising hashrate signifies that either new miners are entering the space or existing miners are expanding their operations, reflecting a positive outlook towards Bitcoin mining as a profitable venture.
Conversely, a drop in this metric suggests that some miners may be disconnecting due to unprofitability in BTC mining.
Below is a chart from Blockchain.com, illustrating the 7-day average Bitcoin Mining Hashrate trend over the past year:
The chart reveals that at the beginning of the year, the 7-day average Mining Hashrate peaked at approximately 817,700 TH/s but subsequently experienced a decline. It stabilized at lower levels through the end of January, yet February has seen a significant uptick, pushing the hashrate to a new high of around 832,600 TH/s.
This growth in mining activity coincides with a period of significant price volatility for the cryptocurrency.
The rise in the Mining Hashrate suggests that miners are optimistic about Bitcoin navigating out of its current turbulent phase favorably.
A useful tool for monitoring miner sentiments with the Hashrate is the Hash Ribbons, which consist of two moving averages (MAs): one for 30 days and the other for 60 days.
According to Charles Edwards, founder of Capriole Investments, there was a brief capitulation signal highlighted in the Hash Ribbons earlier in the month.
A miner ‘capitulation’ occurs when the 30-day MA drops below the 60-day MA. However, this situation did not persist, as the hashrate quickly climbed, resulting in a reversal crossover, which has historically signaled a buying opportunity for Bitcoin.
Current BTC Price
As of now, Bitcoin is trading at approximately $100,000, reflecting a 3% decrease over the past week.
