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Aggregated Bitcoin ($BTC) hashrate, i.e., the total number of hashes produced by all miners on the network, added 6% in just three weeks. Leading on-chain analysis firm CryptoQuant explained why this is a positive signal for $BTC's performance.
Bitcoin ($BTC) hashrate recovers at impressive pace, CryptoQuant says
Bitcoin ($BTC) hashrate spiked to 604 EH/s, which is a local high. The upsurge pushes total growth since bottoming to 6%. Such calculations are published by CryptoQuant researchers in their latest Bitcoin Miners Recover: Hashrate Rises, Selling Eases report.
#Bitcoin miner hashrate is rebounding, reaching 604 EH/s, a 6% increase since July 9.$BTC hashrate is now less than 2% from all-time highs. pic.twitter.com/aKJnOBj1vd
— CryptoQuant.com (@cryptoquant_com) August 2, 2024
In order to revisit its all-time high, Bitcoin ($BTC) miners should raise its hashrate by 2%, as of now. The CryptoQuant team stresses that this should be treated as a positive sign for the market.
In the midterm, the higher hashrate is a result of recovering revenues and miners being fairly paid now after experiencing an extremely underpaid situation since April, when $BTC halving reduced block rewards by 50%.
Daily miner revenues have increased by almost 50% since early July, which appears to be the period of "maximum pain" for the segment.
As covered by U.Today, in mid-April, $BTC block rewards for miners dropped to 3,125 Bitcoins ($BTC) per block.
$BTC selling pressure looks exhausted
As a result, Bitcoin ($BTC) miners are yet again interested in accumulating their coins instead of selling them. Combined with overall bullish sentiment, this results in "eased" selling pressure.
Namely, daily Bitcoin ($BTC) miner outflows have remained between 5,000-10,000 in July, which is roughly equal to 50% of March 2024 levels.
However, Bitcoin ($BTC) miners remain dependent on $BTC price volatility. Daily transaction fees dropped by orders of magnitude in recent months, researchers say.