U.Today – Bitcoin (BTC) Hashrate Growth

Aggregated Bitcoin (BTC) hashrate, the overall number of hashes produced by miners, rose by 6% in three weeks. Leading on-chain analysis firm CryptoQuant explained why this positive trend is significant for BTC’s performance.

Bitcoin (BTC) Hashrate Recovers at Impressive Pace

Bitcoin (BTC) hashrate surged to 604 EH/s, marking a local peak. This increase signifies a total growth of 6% since it bottomed out. Such metrics are outlined by CryptoQuant in their recent report titled “Bitcoin Miners Recover: Hashrate Rises, Selling Eases.”

To reach its all-time high, Bitcoin (BTC) miners need to enhance the hashrate by 2% from current levels. CryptoQuant emphasizes this development as a favorable indicator for the broader market.

In the medium term, the heightened hashrate results from recovering revenues; miners have been compensated fairly following a period of low payment since April, when BTC halving cut block rewards by 50%.

Daily miner revenues have surged by nearly 50% since early July, a period described as the “maximum pain” for miners. In mid-April, BTC block rewards for miners fell to 3,125 BTC per block.

BTC Selling Pressure Looks Exhausted

Consequently, Bitcoin (BTC) miners are showing renewed interest in accumulating their coins rather than selling them. Combined with an overall bullish sentiment, this has led to eased selling pressure.

Daily Bitcoin (BTC) miner outflows have consistently remained between 5,000-10,000 in July, approximately 50% of the levels seen in March 2024.

However, Bitcoin (BTC) miners still rely on BTC price fluctuations. Researchers note a significant drop in daily transaction fees in recent months.

This article was originally published on U.Today