On-chain data shows the 30-day moving average of the Bitcoin mining hashrate is close to setting a new all-time high.
Bitcoin Mining Hashrate (30-Day MA) Has Surged Up Recently
As pointed out by an analyst in a CryptoQuant post, the BTC mining hashrate has been moving higher in recent days.
The “mining hashrate” is an indicator that measures the total amount of computing power connected to the Bitcoin network.
When the value of this metric rises up, it means miners are bringing more machines online right now. Such a trend shows miners are finding the blockchain attractive currently, either because of increased profitability or due to them being bullish on it going up in the future.
On the other hand, a downtrend in the indicator suggests miners are disconnecting their rigs from the network at the moment. This kind of trend hints that miners aren’t finding it that profitable to mine BTC.
Now, here is a chart that shows the trend in the 30-day moving average Bitcoin mining hashrate over the last couple of years:
Looks like the value of the metric has been climbing up in recent days | Source: CryptoQuant
As you can see in the above graph, the 30-day MA value of the Bitcoin hashrate had been on the decline for a while during the last few months.
This decrease in the indicator’s value was because of miner profitability plunging down due to the crash in the BTC price. Miners depend on the USD value of their fixed BTC rewards as they usually pay off their running costs (like electricity bills) in fiat.
As their revenues went down, a lot of miners had no choice but to bring their machines offline in order to cut their losses.
However, in the last month the indicator’s value has swung back to observing some sharp upwards momentum, and has now neared the all-time high set a few months back.
If the metric continues this current trajectory, then it will make a new ATH. Miner sentiment shifting to being positive can lead to a bullish outcome for the price of Bitcoin.
At the time of writing, Bitcoin’s price floats around $22.3k, up 13% in the last seven days. Over the past month, the crypto has lost 6% in value.
Below is a chart that shows the trend in the price of the coin over the last five days.
The value of the crypto seems to have surged up during the last few days | Source: BTCUSD on TradingView
Featured image from Brian Wangenheim on Unsplash.com, charts from TradingView.com, CryptoQuant.com