U.Today – The aggregate hash rate (BTC), i.e. the total amount of hashes produced by all miners on the network, increased by 6% in just three weeks. Leading on-chain analytics firm CryptoQuant explained why this is a positive sign for BTC's performance.
Bitcoin (BTC) Hashrate Recovering at an Impressive Pace, CryptoQuant Claims
Bitcoin (BTC) hash rate has skyrocketed to 604 EH/s, marking a local high. The increase brings the total growth since the bottom to 6%. CryptoQuant researchers publish these calculations in their latest report Bitcoin Miners Recover: Hashrate Rises, Selling Eases.
In order to reach its all-time high again, Bitcoin (BTC) miners would need to increase their hash rate by 2%, starting now. The CryptoQuant team stresses that this should be considered a positive signal for the market.
In the medium term, the higher hashrate is a result of revenue recovery and miners now being paid fairly after experiencing an extremely underpaid situation since April, when the BTC halving reduced block rewards by 50%.
Daily miner revenue has increased by almost 50% since the beginning of July, which appears to be the “maximum pain” period for the segment.
As covered by U.Today, in mid-April, BTC block rewards for miners dropped to 3,125 Bitcoins (BTC) per block.
BTC selling pressure appears to be exhausted
As a result, Bitcoin (BTC) miners are once again interested in accumulating their coins rather than selling them. This, combined with an overall bullish sentiment, results in “relieved” selling pressure.
That is, daily Bitcoin (BTC) miner outflows have remained between 5,000 and 10,000 in July, which is roughly 50% of March 2024 levels.
However, Bitcoin (BTC) miners remain dependent on BTC price volatility. Daily transaction fees have fallen by orders of magnitude in recent months, researchers say.
This article was originally published on U.Today
