The Bitcoin mining sector keeps on expressing resilient conviction, with the hash rate of the network pushing toward exclusive all-time highs. According to Glassnode, a well-known crypto market intelligence platform, these efforts from $BTC miners to achieve the ATH in hash rate signal the commitment of the miners to secure the Bitcoin network. The platform disclosed the current position of the Bitcoin mining sphere in its latest report.
The competitiveness of the Mining landscape and their conviction in the #Bitcoin Network continues to rise, with the Hash Rate blasting towards new ATHs. However, investors remain unconvinced in the short term, with exchange-related onchain volumes beginning to languish.… pic.twitter.com/MQBsKh6QeF
— glassnode (@glassnode) September 10, 2024
Bitcoin Miners Raise Hash Rate to an All-Time High of 666.4 EH/s, Leading to a Difficulty Growth
Glassnode noted that irrespective of the uncertain conditions in the market, miners have steadily upgraded the equipment. Subsequently, the hash rate has touched 666.4 EH/s, only one percent below the all-time high figure. The mounting hash rate additionally indicates the growth in the difficulty of the network. This requires almost 338,000 exahashes for mining just one block, denoting the 2nd-highest difficulty spot in the history of Bitcoin.
Nevertheless, mining activities remain competitive, leading toward a significant decline in the miner revenues. Back in March, the miner revenues saw a peak simultaneous to Bitcoin’s all-time high. However, since then, a dip has been occurring in the fee pressure. This resulted from a decreased monetary transfer demand and smaller revenue from particular transfer types. Such types included those dealing with Inscriptions and Runes.
The revenue concerning block subsidy maintains a high level at nearly $824M, with transfer fee revenue adding $20M. Nonetheless, this sum is almost twenty-two percent below the former ATH. This highlights a revenue plunge that may give rise to income stress, pressuring the miners. Historically, Bitcoin miners had to sell a majority of the mined $BTC to cover costs.
Some Miners Commence Holding Additional $BTC Reserves
However, a few miners have recently started holding more $BTC reserves. This is a trend that points toward their belief in price appreciation in the long term. The on-chain transfer volume of Bitcoin has also seen a slump, settling at approximately $6.2B per day. The respective minimized volume highlights a slowdown in the usage of the network.
Moreover, exchanges have also seen a decline in trading volumes. Additionally, both the outflows and inflows are plunging in comparison with the yearly averages. The respective dip in trading operations suggests a decreased enthusiasm among investors about $BTC. As per Glassnode, an analogous trend can be witnessed in the Cumulative Volume Delta (CVD) metric. It displays a rise in selling pressure over the past ninety days, further contributing to the downward price movement.
