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Bitcoin hashrate stalls after slow and steady rise

Bitcoin hashrate stalls after slow and steady rise

Data shows that the Bitcoin mining hash rate appears to have plateaued since early March, after seeing a steady rise for many months.

Bitcoin Mining Hashrate has mostly moved sideways over the past month

According to the latest weekly report from Arcane Research, the BTC hashrate has broken its upward movement and recently stalled.

The “mining hash rate” is an indicator that measures the total amount of computing power currently present on the Bitcoin blockchain network.

In general, the higher the hashrate, the better the network performance. Also, the more globalized it is (that is, the greater the degree of decentralization), the greater the security of the chain.

When the value of this metric increases, it means that more mining rigs are coming online as miners are drawn to cryptocurrencies.

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On the other hand, a downward trend in hashrate suggests that it is not profitable for miners to mine Bitcoin at the moment, so they unplug their machine to reduce losses due to electricity costs.

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

The indicator seems to have stalled recently | Source: Arcane Research Weekly Update – Week 15, 2022

As you can see from the chart above, the Bitcoin hash rate increased steadily from July 2021 to early March 2022.

Mining hashrate set a new all-time high (ATH) during the period, but has since moved mostly sideways.

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One of the reasons for this trend could be the current low profitability of mining. Due to the difficult price of BTC and some other factors, such as strong competition and low transaction fees, mining profitability is at its lowest point in 12 months.

It is unclear at this time how long this trend could last, but in the future, any increase in the price of Bitcoin should encourage more miners to start and existing ones to expand.

As it is, miners are facing extremely small margins, so the sideways move will serve as a relief to online miners at the moment as they are not facing increasing competition and profits, let alone that way.

BTC price

At the time of writing, the price of Bitcoin is hovering around $41,400, up 2% from last week. Over the past month, the crypto has lost 1% in value.

The chart below shows the price trend of the coin in the last five days.

It seems that the price of BTC has risen considerably in the last day | Source: BTCUSD on TradingView Featured Image from Unsplash.com, Charts from TradingView.com, Arcane Research

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