Bitcoin’s hashrate has continued its recent climb, riding to dramatic new highs. The leading digital asset by market cap has experienced a major bull run, bringing about positive sentiment. This has led to more miners plugging into the Bitcoin network, and a new all-time high of 400 EH/s in the past 48 hours.
Bitcoin Hash Rate Touches New High
The Bitcoin hashrate has been consistently increasing since the beginning of the year. Earlier in the week, the network added 40 EH/s hashrate reaching a peak of 350 EH/s. However, hours after the mining difficulty was adjusted on March 23, the hashrate spiked to astronomical levels. Between March 23rd and March 24th, the bitcoin hashrate recorded a new high of 400 EH/s, according to data from Mempool.
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This development indicates two things: the network’s security has increased, and miners are confident in the profitability of Bitcoin long-term. Miners who have been an integral part of the network since its inception have continued to increase their support for the leading coin due to the recent rally.
In addition, bitcoin mining difficulty has reached a record high and now stands at 46.84T. This represents a 7.5% increase from its previous levels, which correlates to the progressive increase in hashrate during this period.
Why Is Hash Rate Rising?
The rise in hashrate difficulty is largely due to the rise in the price of BTC, which has attracted miners to the Bitcoin network. BTC has experienced an increase of more than 50% in 2023 hitting a peak of $28,000 earlier in the week.
This price spike has encouraged miners to connect their mining equipment to the network. It should be noted that several miners left the Bitcoin network following the extended bearish market in 2022.
With the market recovery, mining profitability has increased, although it is still far from the ideal mark. Nevertheless, it suggests that the miners are getting back to making gains from the network. One of the major indicators of this is the 20% increase in hash price in the past week.
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Hash price is a measure that indicates the average price a mining equipment makes on the bitcoin network daily. Currently, the hash price is about $0.077/TH/day, according to data from hashrateindex. This could drop in the coming days as higher mining difficulty means stiffer competition for mining rewards on the Bitcoin network.
With more power coming from the computing machines of miners, the hash rate has continued to climb. It is, in turn, helping to strengthen the bitcoin network, an all-around win for the asset.
At the time of writing, Bitcoin has experienced a market correction and is trading T $27,455. The current market perception is that we’re in a bullish market, and Bitcoin could be on its way to $30,000 in the coming weeks.
Please note: Content is educational and should not be considered investment advice. Featured Image from Unsplash, Charts from Mempool, Trading View.