Bitcoin Mining Hashrate Has Rebounded From Its Recent Lows

The “Mining Hashrate” refers to an indicator that keeps track of the computing power the Bitcoin miners have currently connected to the network.

Bitcoin mining difficulty has bounced back from recent lows, suggesting that miners are once again expanding their facilities.

The mining hashrate, which is a measure of the computing power dedicated to the Bitcoin network, fell to around 610 million terahashes per second (TH/s) earlier this month. This was down from an all-time high of 667 million TH/s in late July.

The decline in hashrate was likely due to the bearish momentum in the BTC market, which saw the asset fall to as low as $50,000 in early September.

However, the 7-day moving average (MA) of hashrate has shown a sharp rebound over the past week, hitting a high of 650 TH/s two days ago.

This suggests that some miners may be betting on a better outcome for the asset shortly.

A popular indicator used to keep track of the BTC miners’ situation based on the hashrate is the “Hash Ribbons.” The ribbons here refer to the 30-day and 60-day MAs of the hashrate.

When the former crosses under the latter, miners are considered to be going through a phase of capitulation, as they are rapidly taking their computing power offline, historically, BTC has tended to see some bottom when miners have been distressed.

The on-chain analytics firm CryptoQuant has discussed the latest trend in this metric in a new post on Substack.

“Hash Ribbons, an indicator that shows the 30-day and 60-day moving averages of the Bitcoin mining hashrate, briefly showed a capitulation signal earlier this month,” the analysts wrote.

“However, the 30-day MA has since crossed back above the 60-day MA, indicating that miners are once again expanding their facilities.”

The chart shows that the Bitcoin Hash Ribbons had been giving a capitulation signal earlier, but the 30-day MA has since crossed back above the 60-day.

“Although the indicator isn’t meant to pinpoint the exact price bottom, it often precedes higher prices by signaling a reduction in selling pressure from miners,” CryptoQuant added.

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