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  5. Bitcoin Hashrate Slams After New ATH As Price Continues To Fight

Bitcoin Hashrate Slams After New ATH As Price Continues To Fight

Bitcoin Hashrate Slams After New ATH As Price Continues To Fight

Data shows that the Bitcoin mining hash rate has already fallen from the new all-time high as the price of cryptocurrencies continues to struggle.

Weekly Bitcoin Hashrate Strongly Down

The “mining hashrate” is an indicator that measures the total amount of computing power connected to the BTC network.

When the value of this metric increases, it means that there are more mining platforms online at the moment. Such a trend may suggest that miners currently find the network attractive.

On the other hand, a drop in the indicator suggests that some miners are withdrawing their machines from the network, possibly due to low profitability.

Generally, high hashrate values ​​lead to better blockchain performance, while low values ​​can slow transaction processing.

Now, here is a chart showing the Bitcoin hash rate trend over the past year:

It seems that the 7-day average value of the indicator has dropped in recent days | Source: blockchain

As you can see from the chart above, Bitcoin’s weekly mining hashrate set a new all-time high (ATH) of 231 EH/s just a few days ago.

However, for the past few days or so, the metric has already seen a strong downward trend, and its value is now around 200 PE/s.

Miners earnings mainly depend on two things, the value of BTC in USD and the total hashrate of the network.

Related Reading | 14 EPA Fellows from the US Congressional School on Bitcoin Mining and Green Energy

Since miners normally pay their electricity bills and other running costs in dollars, the price of BTC in USD is relevant to them.

The recent drop in the price of Bitcoin has meant that mining block rewards (which have a fixed value as a whole) are now worth less.

The hashrate represents the degree of competition between individual miners. The higher its value, the more rewards are shared between miners.

Related Reading | Crypto Settlements Reach Nearly $300M as Carnage Continues

Therefore, a high amount of hashrate can result in lower rewards for all or some miners (unless they keep up with the competition by expanding their facilities).

As these two factors have recently failed from the perspective of Bitcoin miners, their income has taken a hit.

With the constant struggle for cryptocurrency prices in recent days, it seems that miners with low-efficiency machines or high electricity costs have started to take some rigs offline and have seen a drop in hash rate.

BTC price

At the time of writing, the price of Bitcoin hovers around $19,400, down 29% in the last seven days.

The value of the cryptocurrency seems to have rebounded after falling below $18,000 | Source: BTCUSD on TradingView Featured Image by Brian Wangenheim on unsplash.com, TradingView.com Charts, Blockchain.com

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