The rise in hashrate allocated by unknown miner Phoenix to the BCH network has raised questions about the true motives of this action. Phoenix took BCH’s hashrate to over 10 EH/s, processing a relevant part of all the blocks and receiving the correspondent subsidy during the last days, but the community warns this might be […]
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Marathon Digital Reports Increase in Hashrate, Holds 18,536 BTC
Marathon Digital Holdings, Inc. released its unaudited bitcoin production and miner installation updates for June 2024. The company’s operational hashrate increased slightly, and its bitcoin holdings reached 18,536 BTC. Marathon Digital Reports June 2024 Bitcoin Production In June 2024, Marathon‘s (Nasdaq: MARA) average operational hashrate grew by 2% month-over-month to 26.3 exahash per second (EH/s). […]
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3 Bitcoin Mining Pools Wield 69% of Total Hashrate Discovering 301 Blocks in 72 Hours
Figures reveal that over the preceding 72 hours, three bitcoin mining pools discovered more than 69% of the 436 blocks found during that period. Foundry USA and Antpool, two industry titans, command a formidable 55.5% of Bitcoin’s total computational power. Foundry Dominates Bitcoin Mining in 12-Month Period, Discovers 15,651 Blocks Out of 53,528 In the […]
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Bitcoin Mining Power Wanes — Network Hashrate Drops Below 600 EH/s
Bitcoin’s hashrate has once again dipped below the 600 exahash per second (EH/s) threshold, following a brief increase in computational power on May 26. Since then, the seven-day simple moving average (SMA) shows that the network has decreased by at least 74 EH/s over the past week. Bitcoin Network Hashrate Declines Sharply After Brief Uptick […]
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Bitcoin Hashrate Hits Record High, Surpasses Pre-Halving Levels
Bitcoin’s hashrate has rebounded to the historic highs seen just before the fourth reward halving event. According to the seven-day simple moving average, the network’s hashrate reached a record 657 exahash per second (EH/s) this week. Bitcoin Hashrate Reaches Unprecedented 657 EH/s Following a significant drop post-halving, much of the hashrate has returned to the […]
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Red Alert For Bitcoin: Network Hashrate Takes A 20% Dive
The post-halving world of Bitcoin continues to throw curveballs. After a hashrate surge to celebrate the block reward reduction in April, Bitcoin’s computational power has taken a nosedive, dropping 20% in recent weeks.
This unexpected decline has ignited a debate among analysts, with some sniffing out a fire sale and others urging caution.
Bitcoin: Hashrate Hiccup Or Miner Exodus?
Hashrate, a measure of the combined processing power dedicated to securing the Bitcoin network, typically climbs after a halving event as miners invest in more powerful rigs to compete for the reduced rewards.
However, this time around, the trend defied expectations. Experts like Maartunn, a pseudonymous analyst at CryptoQuant, believe this signals a potential “miner capitulation.”
Less efficient miners are now likely throwing in the towel. The halving, which cut block rewards in half, squeezed profit margins for miners using older equipment. As these miners shut down their operations, the hashrate dips.
Hash Ribbons Flash Warning Sign
Supporting Maartunn’s theory is a technical indicator called Hash Ribbons. This metric tracks the difference between short-term and long-term hashrate averages. When the gap widens, it suggests a decline in mining activity, potentially due to less efficient miners dropping off.
The recent hashrate plunge has triggered a spike in Hash Ribbons, historically a sign of miner capitulation that has often coincided with price lows for Bitcoin.
Bitcoin Miners Selling Off?
Further fueling the capitulation theory is a decrease in Bitcoin’s Miner Reserve. This metric tracks the amount of Bitcoin held in wallets associated with miners. A decline in the reserve suggests miners might be offloading their mined coins, potentially to cover operational costs or to exit the market altogether.
Undervaluation Signal Or Cyclical Dip?
Maartunn interprets these signs as a bullish indicator. Hash Ribbons often point to opportune moments to buy, he argues. Backing his claim is the Market Value to Realized Value (MVRV) ratio, which suggests Bitcoin might be undervalued.
This metric compares the current market price to the average price at which all Bitcoins were acquired. A negative MVRV, like the one Bitcoin currently has, suggests the asset is trading below its historical cost basis, potentially indicating a buying opportunity.
Related Reading: Buckle Up, XRP Fans: Analyst Eyes Price Explosion To .65 In Next 5 Days
Not Everyone On The Capitulation Train
However, not all analysts are convinced. Some argue that the hashrate decline could be temporary, perhaps due to factors like extreme weather events disrupting mining operations in certain regions.
Additionally, the post-halving period is typically one of adjustment for miners, and a short-term hashrate fluctuation might not necessarily signal a mass exodus.
The post-halving Bitcoin landscape is still unfolding. While the hashrate decline and other signs suggest a potential buying opportunity, particularly for long-term investors, the situation remains fluid.
Featured image from Shutterstock, chart from TradingView
Bitcoin Network Adjusts to Lower Fees and Reduced Hashrate After Latest Halving
Based on the three-day simple moving average, Bitcoin’s hashrate has continued its downward trend, registering at about 550 exahash per second (EH/s). Following the halving, onchain costs have decreased significantly, with data indicating transfer fees ranging from .50 to .65 per transaction. Bitcoin’s Hashrate Slides 19% in 16 Days According to statistics, the three-day simple […]
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Post-Halving, Bitcoin Difficulty Drops Significantly; Hashrate Dips Below 600 EH/s
The Bitcoin network experienced its second difficulty adjustment post-halving and the most significant reduction this year. Additionally, the network’s total hashrate fell below the 600 exahash per second (EH/s) mark for the first time since late March. Bitcoin Network Sees Significant Reduction in Difficulty and Hashrate Over the forthcoming two weeks, Bitcoin miners will see […]
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The Halving Effect: Bitcoin Hashrate Decreases as Miners Prepare for Probable Difficulty Drop
Just over two weeks have passed since the fourth Bitcoin halving took place. During this period, the network’s hashprice dropped from over 0 per petahash to below at the beginning of May. It has since increased to per petahash. Despite the modest rebound, the network’s total hashrate has experienced a decrease, with a […]
Bitcoin News
Iris Energy Boosts Hashrate to 9 EH/s Amid Declining Bitcoin Miner Earnings
This week, the Nasdaq-listed bitcoin miner Iris Energy Limited announced it has boosted its hashrate to 9 exahash per second (EH/s) and aims to reach 10 EH/s in the coming month. This development follows the network’s fourth halving and occurs amid a period when Bitcoin’s hashprice has significantly declined, exerting intense pressure on BTC mining […]
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