Bitcoin's hash rate hit an all-time high today, January 3, 2025. Although Bitcoin's hash rate has risen significantly in recent months, it broke a new record on the 16th anniversary of the genesis block.
Bitcoin mining has been on a roll over the past 12 months, especially in the wake of the latest halving. However, surviving miners are painting an optimistic picture for the future.
Bitcoin hash rate is rising steadily
Bitcoin turns 16 this year, and the world’s oldest decentralized currency is going through a historic market cycle. Its price briefly spiked today after days of intense bearish signals, and new data shows its hash rate is at an all-time high. A number of uncertain factors stand between Bitcoin and its future.
The last Bitcoin halving occurred in early 2024, which had a significant impact on the hash rate. Miner activity had been steadily increasing in the months leading up to the halving, but then declined immediately afterwards. The immediate post-halving period had a chaotic effect on the Bitcoin price, further complicating matters.
These events, along with other critical factors in the Bitcoin ecosystem, helped radically change its hashing model for the foreseeable future.
For example, the US mining industry has consolidated to the point where two companies control most of the Bitcoin network’s hash rate. One of these mining giants even laid off 60% of its workforce despite this advantage.
Despite these worrying trends, the mining sector is certainly notching up some notable winners. Hive Digital, for example, announced it reached a new milestone today and plans to upgrade its equipment and relocate its headquarters. Fred Thiel, CEO of the largest bitcoin mining company Mara, predicted a “very positive” outlook for 2025 in a recent interview.
In short, the recent liquidation and increasing mining difficulty have not stopped the positive sentiment among Bitcoin miners. Since October, more miners have been holding onto their assets rather than selling them, and the recent bull market has rewarded this behavior.
As Bitcoin ages another year, many miners are looking to the future.