As Bitcoin climbs above $60,000, analysts at Hashrate Index say it’s still unclear whether or not the network is “out of the woods just yet.”
Bitcoin’s (BTC) difficulty is expected to undergo a “nasty positive adjustment” this week as the network’s hashrate seems to have found a “post-halving bottom,” analysts at Hashrate Index say, suggesting though that the market should “wait to see how brutal the summer will be on the grid in the U.S. before we can be sure.”
Bitcoin hashrate index in USD | Source: Hashrate Index
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In a weekly research update, the analysts noted that Bitcoin’s 7-day average hashrate returned above 600 EH/s for the first time since mid-June, although they stress that “it’s unclear whether or not the network is out of the woods just yet.” With Bitcoin’s difficulty set to rise, miners might “enjoy the (albeit very tiny) rally to hashprice,” potentially easing selling pressure from this group of BTC holders.
“Transaction fees are still in the gutter, which is great for users but not so good for miners. Over the past week, Bitcoin miners reaped a measly 97.92 BTC in transaction fees, an 11.6% decrease from the prior week’s 110.73 BTC.”
Hashrate Index
On a monthly scale, hashprice remains down, the analysts note, adding that with the upcoming adjustments, a struggling Bitcoin mining industry “will take all the help it can get right now.”
The developments follow a recent drop in hashprice, a metric representing miner revenue per terahash, which hit an all-time low of $44.31/PH/day amid a landscape worsened by German government transfers of thousands of BTCs. Hashrate Index noted earlier that the mining environment was even more challenging than in May 2021, when Chinese authorities cracked down on crypto mining and trading, reducing hashprice from 379 PH/day to 203 PH/day.
At the time of writing, Bitcoin’s price surged past $60,000, following a substantial inflow of more than $300 million into multiple spot Bitcoin exchange-traded funds (ETFs), marking the seventh consecutive day of positive inflows for these funds.
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