Bitcoin (BTC) Hashrate Nears All-Time High, Reports CryptoQuant

Bitcoin Hashrate Sees Significant Recovery, According to CryptoQuant

The total hashrate for Bitcoin (BTC), which represents the collective hashing power of all miners on the network, has increased by 6% in just three weeks. CryptoQuant, a leading on-chain analysis firm, has highlighted this trend as a promising indicator for BTC’s future performance.

Bitcoin Hashrate Experiences Rapid Growth

Bitcoin’s hashrate recently surged to 604 EH/s, marking a local peak. This growth demonstrates a recovery from previous lows, with a total increase of 6% since the downturn. The insights were shared in a recent report by CryptoQuant titled "Bitcoin Miners Recover: Hashrate Rises, Selling Eases."

To reach its all-time high, Bitcoin miners need to boost the hashrate by an additional 2%. The CryptoQuant team has emphasized that this uptick in hashrate is a positive development for the broader market.

In the medium term, the rise in hashrate can be attributed to improving revenues for miners, who are finally being compensated adequately after facing significantly reduced earnings since April, when the Bitcoin halving event cut block rewards by 50%.

Miner revenues have surged by nearly 50% since early July, which was considered a period of "maximum pain" for this sector. In mid-April, block rewards for miners fell to 3,125 BTC per block.

Easing Selling Pressure Among Miners

As a consequence of these changes, Bitcoin miners are increasingly inclined to accumulate coins rather than sell them. This shift, combined with a generally positive market sentiment, has led to a reduction in selling pressure.

In July, daily miner outflows of Bitcoin remained between 5,000 and 10,000 BTC, approximately 50% of the levels witnessed in March 2024.

However, it is important to note that Bitcoin miners are still influenced by price volatility. Recently, daily transaction fees have seen a significant decrease, according to the researchers’ analysis.