On-chain data shows the Bitcoin mining Hashrate has declined to its lowest level since October as miners continue to decommission farms.
7-Day Average Bitcoin Mining Hashrate Has Declined RecentlyWhen the value of the Hashrate goes up, it means new miners are joining the chain and/or old ones are expanding their facilities. Such a trend implies BTC mining is looking attractive to these validators.
On the other hand, the indicator observing a decline suggests some of the miners have decided to disconnect their rigs from the network, potentially because they are finding the cryptocurrency to be unprofitable.
As displayed in the above graph, the 7-day average Bitcoin Hashrate set a new all-time high (ATH) around 1,151 exahashes per second (EH/s) back in October. Since this record, however, the indicator’s value has gone down.
What’s behind this trend? The answer to that question could lie in the miner revenue. Miners earn their income through two means: block subsidy and transaction fees. Out of these, the former contributes the largest portion to their revenue.
Back in October, Bitcoin rallied to a new ATH, so miners responded by upgrading their facilities. When the bullish price action didn’t continue, however, the cohort started pulling back. As a result, the 7-day average Hashrate has fallen to around 998 EH/s, its lowest level in more than three months.
Interestingly, the latest continuation of the decline in the indicator has come despite the fact that the cryptocurrency has made some recovery recently. This may be a possible sign that miners aren’t yet convinced by a return of bullish momentum.
To correct for this, Bitcoin could be forced to decrease its Difficulty by 5.6% in the next biweekly adjustment. However, something to note is that there is still about a week to go until this event, so the network’s response could change depending on how the Hashrate behaves in the coming days.
BTC PriceAt the time of writing, Bitcoin is floating around $95,500, up more than 5% over the last seven days.
