According to data from CoinMarketCap, the price of Bitcoin (BTC) has taken a nosedive this week falling by 9.03% to trade below the $62,000 price mark. This negative price action brings the asset’s net gain over the last month to a mere 0.20%, indicating a period equally influenced by both buyers and sellers. As Bitcoin now attempts to find a support level, blockchain analytics platform CryptoQuant has revealed certain elating developments in the token mining space.
Bitcoin Miners Hashrate 2% Away From Network ATH
On Friday, CryptoQuant shared on X that the Bitcoin miner hashrate has been on the rise this last week, reaching as high as 604 exhashes/second (EH/S). According to the analytics team, this value represents a 6% gain from the lows on July 9 but remains 2% off the network’s current all-time high hashrate value.
Cryptoquant report states that Bitcoin miners are currently enjoying a better pay condition compared to April as daily mining revenues have grown by over 50% since early July, thus reducing the need to offload their assets. This is proven evidently as daily Bitcoin miner outflows stayed between approximately 5000 – 10,000 BTC in July, showing a notable decrease from the range of 10,000 – 20,000 BTC seen in early March when Bitcoin reached the $70,000 price mark.
#Bitcoin miner hashrate is rebounding, reaching 604 EH/s, a 6% increase since July 9.$BTC hashrate is now less than 2% from all-time highs. pic.twitter.com/aKJnOBj1vd
— CryptoQuant.com (@cryptoquant_com) August 2, 2024
Generally, the Bitcoin hashrate measures the total computational power used to mine and process transactions on the Bitcoin network. It is a crucial indicator of miners’ confidence in BTC, with an increase signaling belief in mining the token due to profitability from current or future prices.
However, the ability of Bitcoin miners to sustain their recent performances despite the token’s recent dip could prove pivotal in initiating a market price rebound, especially as a sell-off by these miners could further drive down the token’s price. Nevertheless, a future decline in hashrate is a more likely scenario as miners’ profitability is largely depends on Bitcoin’s price in addition to network fees.
BTC Price Overview
At the time of writing, Bitcoin trades at $61,387 with a loss of 5.05% in the last 24 hours. Meanwhile, the asset’s daily trading volume is barely up by 5.35% and is valued at $42.9 billion.
Historical price data indicates BTC may currently be in the support zone, however, any further decline past this level could result in prices as low as $55,000 as seen in early July. Alternatively, if the crypto market eventually finds some stability in this zone, a return to the $70,000 price zone is on the cards.
Featured image from Reuters, chart from Tradingview
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