Bitcoin (BTC) Hashrate Hits New All-Time High, Miner Hash Price Plunges to Record Low

The Bitcoin network hashrate hit a new all-time high earlier this week following increased selling from smaller mining entities.

Bitcoin's network hashrate has hit a new all-time high earlier this week, as smaller mining entities ramped up their selling activity. At the same time, the miner hash price has plunged to a record low.

According to a report from CryptoQuant, Bitcoin's hashrate currently stands at 627 exahashes per second (EH/s), up significantly from an 8.5% drawdown in July. The spike comes as BTC struggles to remain above $58,000 and trades at a level 20% below its all-time high of $73,000.

The surge in hashrate translates to more difficulty for miners, as each block becomes harder and more competitive to mine, requiring more computing power and higher energy costs. However, such an occurrence also denotes strong security for the largest blockchain.

Bitcoin hash price, a metric that measures how much a miner can earn per amount of mining computing power, has dropped to a record low of $0.038 per TH/s. Shortly after the Bitcoin halving in April, this metric hovered around $0.05 per TH/s. This decline also coincides with a miner capitulation that occurred last week.

As BTC briefly slipped to $49,500, miner outflows surged. Outflows from this cohort of market participants spiked to 19,000 BTC on August 5, marking the highest level since March 18.

This indicated that miners sold a portion of their holdings as their average profit margins decreased to 25%, the lowest since January 22. During the sale of their reserves, some miners realized losses due to bitcoin’s dip in value, marking the largest daily loss since May 29, at $22 million.

Smaller Miners Are Selling

Large Bitcoin mining entities have increased their holdings through consistent accumulation despite the miner capitulation. The reserves of this cohort of market participants currently amount to 66,000 BTC.

In contrast, the Bitcoin holdings of smaller entities have bottomed out. These miners may record further declines in their reserves as on-chain analysis shows more selling activity due to low profitability. CryptoQuant’s Miner Profit/Loss Sustainability metric indicates that miners are still underpaid, especially as mining difficulty is increasing and prices have fallen.

On the brighter side, miner capitulation events and higher miner outflows usually occur near local bottoms for BTC prices during bull cycles. This implies that a bitcoin rally may be on the horizon.

The above is the detailed content of Bitcoin (BTC) Hashrate Hits New All-Time High, Miner Hash Price Plunges to Record Low. For more information, please follow other related articles on the PHP Chinese website!