Bitcoin Hashrate Hits ATH Despite Bearish Price: Miners Betting on Rally?

On-chain data reveals that the Bitcoin Mining Hashrate has reached a new ATH despite the asset's downward trend.

Recent Increase in 7-Day Bitcoin Mining Hashrate
The “Mining Hashrate” measures the overall computational power of all miners linked to the Bitcoin network. BTC employs a Proof-of-Work (PoW) consensus process, where validators compete to solve mathematical problems to add the next block to the chain, hence miners require this computer power.

The hashrate might indicate how miners see the coin. The measure may be rising because validators are finding the asset appealing, attracting new miners and expanding their facilities.

A drop suggests some miners have left the network, maybe because BTC mining is no longer economical.

This chart displays the 7-day average Bitcoin Mining Hashrate during the previous year-long trend:

As seen in the graph above, the 7-day average Bitcoin Mining Hashrate established a record around the end of July. The indicator dropped rapidly after this peak and didn't recover until the second part of August.

The indicator retraced to the lows at the conclusion of the month after a prolonged recovery. Why these patterns occurred may be explained by BTC price movement.

Block subsidies from solving network blocks are Bitcoin miners' main source of revenue. The chain's rewards are set in BTC value and paid at a specified period.

Thus, their only variable is the cryptocurrency's USD value. Thus, miners' income grows with prices. The late July Hashrate high happened as BTC soared near $70,000, whereas the subsequent dip occurred when the price sharply declined.

The 7-day average Bitcoin Mining Hashrate has been climbing since September, even if the price has been falling.

This shows that the miners are daring and have extended their facilities in preparation of a rally. The Hashrate had previously displayed a similar pattern earlier in the year, leading to BTC's rise to the ATH.

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