Bitcoin’s mining activity just reached a new peak, even though the price of Bitcoin itself is down. This is a big deal!
What’s the Hashrate?
The “hashrate” measures the total computing power used by Bitcoin miners. Think of it as the collective strength of all the computers working to secure the Bitcoin network. A higher hashrate means more miners are involved, suggesting they find it profitable. A lower hashrate suggests some miners are quitting because it’s no longer worth the electricity costs.
A Record-Breaking Surge
Recently, the 7-day average Bitcoin hashrate has exploded to a new all-time high. For months, it had been stuck in a range, only slightly increasing with each peak. But this time, it’s broken through, even surpassing 1,000 EH/s (exahashes per second) – that’s a huge number! This is the first time the 7-day average has hit this level.
Miners Bet Big on Bitcoin’s Future
What’s surprising is that this hashrate increase happened despite Bitcoin’s price going down. Usually, miners expand or reduce their activity based on price. This suggests miners are betting that Bitcoin’s price will rebound soon. Only time will tell if they’re right.
A Potential Speed Bump Ahead?
There’s a potential hurdle on the horizon: an upcoming “difficulty adjustment.” This makes mining Bitcoin harder, potentially causing some miners to drop out and lowering the hashrate. Estimates suggest the difficulty will increase by over 5%.
Bitcoin’s Current Price
At the moment, Bitcoin is trading around $108,700, down about 2% in the last week.