Bitcoin Hashrate Hits 400 EH/s As Miners Profit From Bull Market
Bitcoin’s hashrate has continued its recent climb, reaching new dramatic highs. The top digital asset by market capitalization experienced a big rally, bringing positive sentiment. This led to more miners connecting to the Bitcoin network and a new all-time high of 400 EH/s in the last 48 hours.
Bitcoin Hash Rate Hits New High
Bitcoin hashrate has been steadily increasing since the beginning of the year. Earlier in the week, the network added a hashrate of 40 EH/s reaching a peak of 350 EH/s. However, hours after the mining difficulty was adjusted on March 23, the hashrate reached astronomical levels. Between March 23rd and 24th, bitcoin’s hashrate recorded a new high of 400 EH/s, according to data from Mempool.
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This development indicates two things: network security has increased and miners are confident in Bitcoin’s long-term profitability. 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.
Furthermore, bitcoin mining difficulty has reached a record high and is now at 46.84T. This represents a 7.5% increase from previous levels, which correlates with the progressive increase in hashrate during this period.
Why is the hash rate increasing?
The increased hashrate difficulty is largely due to the rising BTC price, which has attracted miners to the Bitcoin network. BTC has experienced an increase of more than 50% in 2023, reaching a peak of $28,000 earlier in the week.
This price increase encouraged miners to connect their mining equipment to the network. It should be noted that several miners left the Bitcoin network after the extended bear market in 2022.
With the recovery of the market, the profitability of mining has increased, although it is still far from the ideal mark. However, it does suggest that miners are making gains from the network again. One of the main indicators of this is the 20% increase in the hash price over the past week.
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The hash price is a measure that indicates the average price that a mining rig makes on the bitcoin network on a daily basis. Currently, the hash price is around $0.077/TH/day according to data from hashrateindex. This could drop in the coming days as higher mining difficulty means fiercer competition for mining rewards on the Bitcoin network.
With more power coming from the miners’ computing machines, the hash rate continued to rise. It is, in turn, helping to strengthen the bitcoin network, an overall win for the asset.
At the time of writing, Bitcoin has seen a market correction and is trading at T$27,455. Current market perception is that we are in a bull market, and Bitcoin could reach $30,000 in the coming weeks.
Note: The content is educational and should not be considered investment advice. Unsplash featured image, Mempool charts, trade preview.