Bitcoin Hashrate falls after new ATH as price continues to fight
Data show that the Bitcoin mining hash rate has already plummeted since the new all-time high, as the cryptocurrency price has continued to struggle.
Bitcoin Weekly Hashrate is going down sharply
“Mining hashrate” is an indicator that measures the total amount of data power connected to the BTC network.
As the value of this calculation increases, it means that more mining rigs are coming online right now. Such a trend may indicate that miners find the network attractive at present.
On the other hand, a decline in the indicator suggests that some miners are taking their machines off the grid, perhaps due to low profitability.
Usually, high values of the hash rate result in better performance of the blockchain, while low ones can lead to transactions being handled more slowly.
Now, here’s a chart showing the trend in the Bitcoin hash rate over the last year:
Looks like the 7-day average value of the indicator has gone down in recent days | Source: Blockchain
As you can see in the graph above, the weekly Bitcoin mining hash rate set a new all-time high (ATH) of 231 EH / s just a few days ago.
But over the last two days or so, the metric has already observed a sharp downward trend, and the value is now around only 200 EH / s.
The income of miners depends mainly on a few things, the value of BTC in USD and the total network hash rate.
Related reading | 14 members of the US Congress School EPA on Bitcoin mining and green energy
Since miners usually pay the electricity bills and other operating costs in dollars, BTC’s price in USD is relevant to them.
The recent crash in the price of Bitcoin has meant that the miners’ block rewards (which have a fixed value as a whole) are now less valuable.
The hash rate represents the amount of competition between the individual miners. Higher value, more divided are the rewards between the miners.
Related reading | Crypto liquidations reached nearly $ 300 million while the carnage continues
So a high amount of hash rate can lead to less rewards for all or some miners (unless they keep up with the competition when it comes to expanding their facilities).
Since both of these factors have gone wrong from the perspective of Bitcoin miners recently, their earnings have suffered.
With the continued struggle in the crypto price in recent days, it seems that miners with low-efficiency machines or high electricity costs have begun to take some rigs offline, and register as a decline in the hash rate.
BTC price
At the time of writing, Bitcoin’s price is floating around $ 19.4k, down 29% over the last seven days.
The value of the crypto seems to have rebounded after going below $18k | Source: BTCUSD on TradingView
Featured image from Brian Wangenheim on unsplash.com, charts from TradingView.com, Blockchain.com
