Bitcoin Mining Hashrate 30-day MA is on the brink of new ATH
On-chain data shows that the 30-day moving average of the Bitcoin mining hash rate is close to setting a new all-time high.
Bitcoin Mining Hashrate (30-day MA) has increased recently
As pointed out by an analyst in a CryptoQuant post, the BTC mining hashrate has been moving higher in recent days.
“Mining hashrate” is an indicator that measures the total amount of computing power connected to the Bitcoin network.
When the value of this metric increases, it means that miners are bringing more machines online right now. Such a trend shows that miners find the blockchain attractive at the moment, either because of increased profitability or because they are optimistic about going up in the future.
On the other hand, a downward trend in the indicator suggests that miners are disconnecting their rigs from the network at the moment. This kind of trend suggests that miners are not finding it that profitable to mine BTC.
Now, here’s a chart showing the trend of the 30-day moving average of Bitcoin mining hashrate over the past couple of years:
Looks like the value of the metric has been climbing up in recent days | Source: CryptoQuant
As you can see in the graph above, the 30-day MA of the Bitcoin hashrate had been in decline for some time over the past few months.
This decrease in the value of the indicator was due to the fact that the profitability of miners plummeted due to the crash in the BTC price. Miners rely on the USD value of their fixed BTC rewards as they typically pay off their operating costs (like utility bills) in fiat.
As their earnings dwindled, many miners had no choice but to bring their machines offline to cut their losses.
In the last month, however, the indicator’s value has swung back to observe some strong upward momentum, and has now approached the record of a few months back.
If the metric continues this current path, it will create a new ATH. Miner sentiment shifting to positive could lead to a bullish outcome for the price of Bitcoin.
BTC price
At the time of writing, Bitcoin’s price is hovering around $22.3k, up 13% in the last seven days. Over the past month, the crypto has lost 6% in value.
Below is a chart showing the trend in the price of the coin over the last five days.
The value of the crypto seems to have surged up during the last few days | Source: BTCUSD on TradingView
Featured image from Brian Wangenheim on Unsplash.com, charts from TradingView.com, CryptoQuant.com
