Bitcoin's hashrate collapse triggers a projected 9% difficulty adjustment, offering miners temporary relief amid seasonal and post-halving pressure.
The combined hashrate of the 13 bitcoin miners the bank follows has risen 99% year-on-year versus a 55% y/y increase in the network hashrate, the report said.
The total market cap of the 13 U.S.-listed miners that the bank tracks rose 19% from the month previous, according to the report.
Bitcoin’s difficulty is projected to rise over 4% to a record 126.95T as hashrate nears an all-time high despite low transaction fees.
The group’s director of business development, a speaker at this year’s Consensus festival, says bitcoin miners are expanding into bitcoin pooling, hashrate hedging, AI and HPC.
Bitcoin is alive and kicking, spewing out impressive hashrate numbers like never before. Bitcoin’s network processing power has reached an unprecedented 1 Zetahash per second (ZH/s), marking a major milestone in the cryptocurrency’s 16-year history. Multiple blockchain tracking services confirmed the achievement between April 4-5, 2023, though they disagree on the exact timing of when the threshold was crossed. Related Reading: XRP Will Explode—And This Korean Expert Says He’ll Be ‘Laughing’ At Critics Different Trackers Report Varying Dates For Historic Milestone A Zetahash (ZH/s) is a unit of computational power used to measure Bitcoin’s hashrate, which reflects how much computing power is being used to secure the Bitcoin network through mining. According to mempool.space data, Bitcoin’s hashrate peaked at 1.025 ZH/s on April 5. BTC Frame’s metrics showed a slightly earlier breakthrough at 1.02 ZH/s on April 4. Meanwhile, Coinwarz reported an even higher peak of 1.1 ZH/s on April 4 at block height 890,915, but also suggested the network first hit the 1 ZH/s mark on March 24. The differences stem from how each service calculates hashrate. Blockchain analyst Jameson Lopp previously pointed out that using one “trailing block” versus five blocks for estimation can result in differences exceeding 0.04 ZH/s. Mitchell Askew, head analyst at Blockware Solutions, said viewing the raw Hashrate metric can be deceiving due to random variations in block times. He noted that Bitcoin’s 30-day moving average hashrate remains around 0.845 ZH/s. Network Shows Massive Growth Since 2016 This achievement represents remarkable growth for the Bitcoin network. The current hashrate of 1 ZH/s equals 1,000 Exahashes per second, marking a 1,000-fold increase since late January 2016 when the network first reached 1 EH/s. To put this computational power in perspective, Bitcoin now processes approximately 40,000 times more calculations per second than Litecoin, the second-largest proof-of-work cryptocurrency network. Based on Coinwarz data, Litecoin currently operates at just 2.49 Petahashes per second. Commercial Mining Operations Drive Hashrate Growth According to Askew, the surge in hashrate has coincided with increased competition among commercial Bitcoin mining firms. Miners are doubling down, and expanding sites and plugging in more efficient machines, he said. However, he warned that less efficient miners might struggle unless Bitcoin prices increase in the coming months. Related Reading: Ethereum Slips Below Triangle—Is A $1,600 Crash Next? At least 24 publicly listed companies now operate Bitcoin mining equipment, according to CompaniesMarketCap.com. MARA Holdings leads the pack with more than 50 EH/s of computing power. Other major contributors include Riot Platforms, Core Scientific, CleanSpark, Hut 8 Mining, and TeraWulf. Most of the network’s hashrate flows through major mining pools, with Foundry USA Pool and AntPool controlling the largest shares, according to the Hashrate Index. Record Hashrate Coincides With Market Downturn The network’s technical achievement occurred during a sharp market decline. Bitcoin’s price fell 8% over a 24-hour period to $77,210, while US stocks experienced what analysts called the largest two-day loss ever. Featured image from Gemini Imagen, chart from TradingView
Network difficulty jumps nearly 7%—the biggest increase since July 2024—driven by an all-time high in hashrate.
Despite a record-breaking hash rate, low transaction fees and empty blocks raise concerns about bitcoin’s long-term sustainability.
Transaction fees made up just 1.3% of total block rewards in February, marking the lowest share since the last bear market bottom in 2022.
The latest MinerMag report shows a slowdown in Bitcoin hashrate growth amid shifting market conditions.
Bitcoin transaction fees have hit multi-year lows despite the price hovering around $100,000.
According to recent blockchain data, the Bitcoin hashrate has been on the rise as it touched a new all-time high on Friday, January 3rd, 2025. This new peak comes as the premier cryptocurrency continues to recover after a disappointing end to the year 2024. Positive Correlation Between Bitcoin Price And Hashrate The “hashrate” is a metric that measures the total amount of computing power that secures a Proof-of-Work blockchain network (Bitcoin, in this case). It is used to determine the mining difficulty of a blockchain and gauge network participation. When the hashrate metric increases, it indicates that Bitcoin miners are devoting more computational resources to the network, with the blockchain becoming more secure as a result. Meanwhile, a lower hashrate suggests reduced network participation and less security. Related Reading: Toncoin Price Recovery Continues — Is The Dwindling Staking TVL Ratio Bullish? On Friday, the Bitcoin hashrate briefly hit a new record high of over 1,000 exahashes per second (EH/s). According to the latest on-chain data, the hashrate has retraced back to around 783.02 EH/s, as of this writing. Data from CoinWarz shows that this new all-time high for Bitcoin hashrate is nearly double its value about a year ago. As of January 2024, the BTC network hashrate stood at around 510 EH/s. From a historical standpoint, there is a positive correlation between the network hashrate and Bitcoin price. For instance, substantial increases in the hashrate during the 2017 and 2021 bull cycles overlapped significant price rallies. Moreover, a higher hashrate signals strong network fundamentals, which can improve the sentiment surrounding the premier cryptocurrency. While this may not lead to immediate surges, it could contribute to the price growth over time. As of this writing, the price of Bitcoin stands at around $98,264, reflecting an almost 2% increase in the past 24 hours. This optimistic single-day action adds to the somewhat positive weekly performance, with the flagship cryptocurrency up by nearly 5% in the past seven days. US Mining Pools Now Account For 40% Of Global Hashrate: Report A new report has revealed that the United States accounted for more than 40% of Bitcoin‘s global hashrate at the end of 2024. Specifically, two US-based mining pools, Foundry USA and MARA Pool, were responsible for over 38.5% of all blocks mined. Related Reading: XRP Price Prediction To $4.9: How The 1-Day 50 MA Will Drive The Next Wave A TheMinerMag report showed that Foundry USA improved its hashrate from 157 EH/s at the beginning of 2024 to approximately 280 EH/s by December to become the single largest mining pool by hashrate. Meanwhile, MARA Pool accounts for about 4.35% of global hash power. While this represents significant growth for the United States in the BTC mining industry, China-based mining pools still control the majority of the total hashrate. Despite a ban on crypto in the country, Chinese mining pools controlled 55% of the global hashrate, as of September 2024. Featured image from iStock, chart from TradingView
Bitcoin's hashrate increased by approximately 50% in 2024, and it is currently on course to rise for the eighth consecutive time.
The competition for cheap electrons could establish a floor for hashprice, or at least slow down hashrate growth.
The Bitcoin hashrate, on a seven-day moving average, hit a record high of 755 EH/s last week.
Miners including Cormint and TeraWulf are among the lowest-cost producers of Bitcoin, an important advantage amid tightening margins, CoinShares said.
Need to know what happened in crypto today? Here is the latest news on daily trends and events impacting Bitcoin price, blockchain, DeFi, NFTs, Web3 and crypto regulation.
Bitcoin’s upcoming price recovery will be driven by a handful of unique factors.
While both Hut 8 and Irish Energy expanded operations, they reported contrasting results in Bitcoin production efficiency.
According to CryptoQuant founder Ki Young Ju, Chinese mining pools control 55% of the network hashrate, while US mining pools control 40%.
The EU-compliant security token gives investors exposure to the hashrate over a four year period.
Institutional spot Bitcoin ETF outflows and lowered Bitcoin miner profitability could be driving the current price drop
According to data from CoinMarketCap, the price of Bitcoin (BTC) has taken a nosedive this week falling by 9.03% to trade below the $62,000 price mark. This negative price action brings the asset’s net gain over the last month to a mere 0.20%, indicating a period equally influenced by both buyers and sellers. As Bitcoin now attempts to find a support level, blockchain analytics platform CryptoQuant has revealed certain elating developments in the token mining space. Related Reading: Bitcoin Miner Capitulation Comes To An End – Time To Buy BTC? Bitcoin Miners Hashrate 2% Away From Network ATH On Friday, CryptoQuant shared on X that the Bitcoin miner hashrate has been on the rise this last week, reaching as high as 604 exhashes/second (EH/S). According to the analytics team, this value represents a 6% gain from the lows on July 9 but remains 2% off the network’s current all-time high hashrate value. Cryptoquant report states that Bitcoin miners are currently enjoying a better pay condition compared to April as daily mining revenues have grown by over 50% since early July, thus reducing the need to offload their assets. This is proven evidently as daily Bitcoin miner outflows stayed between approximately 5000 – 10,000 BTC in July, showing a notable decrease from the range of 10,000 – 20,000 BTC seen in early March when Bitcoin reached the $70,000 price mark. Generally, the Bitcoin hashrate measures the total computational power used to mine and process transactions on the Bitcoin network. It is a crucial indicator of miners’ confidence in BTC, with an increase signaling belief in mining the token due to profitability from current or future prices. However, the ability of Bitcoin miners to sustain their recent performances despite the token’s recent dip could prove pivotal in initiating a market price rebound, especially as a sell-off by these miners could further drive down the token’s price. Nevertheless, a future decline in hashrate is a more likely scenario as miners’ profitability is largely depends on Bitcoin’s price in addition to network fees. Related Reading: Bitcoin Miners Slow Down Selling In July, What This Could Mean For Price BTC Price Overview At the time of writing, Bitcoin trades at $61,387 with a loss of 5.05% in the last 24 hours. Meanwhile, the asset’s daily trading volume is barely up by 5.35% and is valued at $42.9 billion. Historical price data indicates BTC may currently be in the support zone, however, any further decline past this level could result in prices as low as $55,000 as seen in early July. Alternatively, if the crypto market eventually finds some stability in this zone, a return to the $70,000 price zone is on the cards. Featured image from Reuters, chart from Tradingview
BTC price rallied as an improved regulatory outlook in the US and a series of improvements in the Bitcoin ecosystem altered investor expectations.
Could miner capitulation signal that selling pressure is easing, or could it be the death spiral that takes Bitcoin out of its decade-long run?
Bitfarms increased its online hashrate to 10.4 exahashes per second in June, marking a 39% month-on-month increase.
The Bitcoin mining firm also blamed “unusually cold temperatures” at its Rio Cuarto facility in Argentina for the fall in Bitcoin production.
The new crypto derivatives product allows investors to speculate on future hashrates and hashprices.
The winds of change are blowing through the Bitcoin landscape. On March 14th, 2024, the network witnessed a monumental shift – mining difficulty skyrocketed to a record-breaking 84 trillion hashes. This unprecedented challenge coincides with another significant event on the horizon: the Bitcoin halving slated for April. Related Reading: Euphoria Or False Dawn? Why The Ethereum $4,000 Party Might End Soon According to BTC.com, the rate has risen by nearly 5.80% since the previous modification. The mining hashrate for the original coin has also peaked, indicating that more people are now participating in the mining process. At present, the value stands at 617 EH/s. Source: BTC.com Bitcoin Mining: The Difficulty Dilemma Mining Bitcoin is no easy feat. Miners compete to solve complex cryptographic puzzles, and the difficulty of these puzzles adjusts based on the overall network hash rate. As more miners join the network, the difficulty increases to ensure a steady block production rate (roughly 1 block every 10 minutes). This recent surge in difficulty signifies an influx of new miners, likely drawn by Bitcoin’s recent price rally that saw it peak at a staggering $73,800 on the same day. The Halving Effect The upcoming halving event in April throws another variable into the equation. Every four years, the block reward for miners – the amount of Bitcoin earned for successfully mining a block – is cut in half. This economic policy is a cornerstone of Bitcoin’s design, aiming to control inflation and maintain scarcity over time. The last halving in May 2020 witnessed a significant price increase in the following months, and many analysts believe the upcoming halving will follow suit. BTCUSD weakens today and trades at $68,178: TradingView.com Here’s the logic: with the supply of new Bitcoins being halved, the existing ones become relatively more scarce, potentially driving the price up due to increased demand. A Balancing Act For Miners Despite the rising difficulty, the potential for Bitcoin’s price to appreciate after the halving could incentivize miners to weather the storm. This economic incentive is bolstered by the recent spike in mining rewards, which reached nearly $79 million This suggests that even with the increased difficulty, miners are still reaping substantial profits due to the high Bitcoin price. However, the long-term sustainability of this model is debatable. As difficulty continues to climb, the energy consumption required for mining will also rise. It raises concerns about the environmental impact of Bitcoin mining, especially considering the reliance on non-renewable energy sources in some regions. Related Reading: Number Of Ethereum Short-Term Holders Increasing – Is A Bull Rally Next? Beyond The Headlines The narrative surrounding Bitcoin’s recent surge often focuses on its price and the upcoming halving. However, there are crucial underlying factors to consider. The ever-increasing mining difficulty raises questions about the long-term viability of proof-of-work, Bitcoin’s current consensus mechanism. Alternative, more energy-efficient mechanisms are being explored, but their widespread adoption remains uncertain. Featured image from Unsplash, chart from TradingView