Bitcoin [BTC] Investors can finally rejoice. Amid the general downturn in global financial markets and a resulting collapse in the cryptocurrency market, one thing has remained constant. BTC’s hashrate continued to grow despite tough times in the crypto market.
According to data from the blockchain analytics platform knifeBitcoin’s hash rate surged to a peak of 282 MH/s on Oct. 1. At press time, the mining hash rate on the network was 245 MH/s.
Glassnode noted in a new report that the new all-time high could be called 242 exahash per second. For context, “This equates to all 7.753 billion people on Earth, each performing a SHA-256 hash computation approximately 30 billion times per second,” the on-chain analytics platform explained.
The journey to the all-time high
In evaluating the mining activity on the network, Glassnode took into account the network’s hash bands in its report. It turns out that towards the end of August, Bitcoin’s hash band started to “unwind”, indicating an improvement in mining conditions on the Bitcoin network.
In the past, Glassnode noted that this was usually followed by a rally in the leading coin’s price.
However, Glassnode noted that if the price per BTC The recent rally in hashrate on the network was due to “more efficient mining hardware coming online and/or miners with superior balance sheets having a larger stake in the hash power network.”
In addition, Glassnode also evaluated the Mining Pulse metric. According to Glassnode, this metric is used to track miner activity. It measures the average block interval relative to the target of 600 seconds.
A look at Bitcoin’s Mining Pulse showed that there was a sharp drop in mining activity on the network between late May and early August.
In previous bear markets, such moves were followed by “a sharp and rapid drop in hashrate.” Glassnode commented on whether a similar response is imminent, adding that the same “remains to be seen.”
What does the hash rate BTC cost
With an increase in hashrate on the network, mining difficulty also started an upward trend. This meant that the cost of production per BTC unit rose sharply.
With a continued decline in the price per BTC, an increase in production costs weighed on miners’ income, Glassnode noted.
In addition, according to Glassnode, the increase in production costs led to a decrease in earnings per exahash. This number was at an all-time low of 4.06 BTC per EH per day. Glassnode explained,
“On a USD basis, this equates to between $78,000 and $88,000 per retail unit per day. This has returned to October 2020 levels, which were after the 2020 halving event and where BTC prices were around $10,000 (~$20,000 currently). From this we can see that a 66% increase in difficulty and hashrate since October 2020 equates to roughly halving revenue per hash.”
BTC was still trading below the psychological $20,000 region, crossing at $19,644.53 at press time, according to data from CoinMarketcap.
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