Bitcoin mining hashrate shows rebound
Recent on-chain data indicates that Bitcoin’s (CRYPTO:BTC) mining hashrate has recently rebounded, signaling a renewed optimism among miners.
The "Mining Hashrate" measures the total computing power of miners connected to the Bitcoin network, expressed in terahashes per second (TH/s).
An increase in this metric suggests that existing miners are expanding their operations, and new miners are joining the network.
Conversely, a declining hashrate typically means that some miners are disconnecting due to unprofitability.
This was evident earlier this month when the 7-day moving average (MA) of the Bitcoin mining hashrate dropped to approximately 610 million TH/s from an all-time high of 667 million TH/s in late July.
This decline correlated with Bitcoin's bearish momentum during that period, which saw its price fall below $50,000.
Despite Bitcoin's price not yet recovering to its previous high of around $70,000, the 7-day MA of the mining hashrate has recently surged back to 650 TH/s.
This rebound suggests that some miners are anticipating a price recovery and are betting on a more favorable outcome for Bitcoin.
An important indicator used to gauge miner sentiment is the "Hash Ribbons," which consist of the 30-day and 60-day moving averages of the hashrate.
Historically, when the 30-day MA falls below the 60-day MA, it indicates miner capitulation.
However, recent data shows that the 30-day MA has crossed back above the 60-day MA, suggesting that miners are less distressed and that selling pressure may be easing.
CryptoQuant, an on-chain analytics firm, notes that while the Hash Ribbons indicator does not precisely predict price bottoms, it often signals reduced selling pressure from miners, which can precede price increases.
This trend reflects a renewed confidence among Bitcoin miners despite ongoing market challenges.
At press time, Bitcoin was valued at $60,728.64.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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