Currently, despite the adverse conditions facing BTC miners and the prices of the popular Cryptocurrency experiencing a slight drop, Bitcoin is still showing surprising strength.
For reference, on August 28, 2024, Bitcoin Mining difficulty increased by approximately 2.99% from 86.87 trillion to 89.47 trillion, making it difficult for miners to discover blocks.
At the same time, Bitcoin crypto miners continue to face low profits, with the current value of 1 Petahash per second (PH/s) of production per day at $41.65. However, this is a significant improvement from August 5, when the price per Petahash per day was 16.51% lower, reaching $35.78 per PH/s.
However, while Bitcoin miners are facing low revenues and high difficulty levels, BTC’s power output (Hashrate) has reached near-record levels. According to data from Hashrateindex, the total hash rate currently stands at 661 Exahash per second (EH/s), just 16 EH/s away from its all-time high of 677 EH/s reached on July 25.
Behavior of the seven-day simple moving average of the total hash rate of the Bitcoin network. Source: Hashrateindex
At the same time, the price of Bitcoin has also fallen by 1.76% over the past week, even after a brief spike on September 4. Bitcoin is currently trading at $58,124, according to data from CoinMarketCap.
It is worth noting that analysts suggest that selling pressure, along with various macroeconomic factors, have contributed to the decline in the price of BTC, which is why some experts consider the current trend as an opportunity to invest.
Bitcoin Hashrate on the Rise: Sign of Recovery or Prelude to Another Halving?
It is worth noting that according to experts, if the Bitcoin price improves in the next week, the hashrate could easily break its previous record reached on July 25. However, an increase in the hashrate could trigger another increase in the network’s difficulty adjustment (Halving).
According to Hashrateindex, the BTC network difficulty is expected to increase by 2.2% this week. Of the 661 EH/s recorded on Wednesday, the Foundry mining pool contributes 201.25 EH/s, while Antpool controls 167.47 EH/s of hashrate power, according to mempool.space.
On Tuesday, JPMorgan noted in a report that Bitcoin mining profitability is stuck at “historic lows.” This is compared to a peak value of $342,000 in November 2021, when the price of Bitcoin was $60,000 and the network hashrate was 161 EH/s.
“We estimate that Bitcoin miners earned an average of $43,600 per EH/s in daily block reward revenue in August. This is the lowest point on record,” JPMorgan analysts Reginald Smith and Charles Pearce said.
However, in contrast to JPMorgan, experts have pointed out that a rising hash rate is an encouraging sign that miners are weathering the recent revenue slump, thanks to several key buffers.
These factors include high fees charged on the day of the fourth halving, newly released state-of-the-art mining rigs generating up to 500 Terahash per second (TH/s), and stock sales for publicly traded crypto miners.
However, it remains to be seen how long these factors will be able to sustain Bitcoin mining operations, should the downturn persist.
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