Bitcoin (BTC) Hashrate Extremely Close to ATH, CryptoQuant Says

Bitcoin (BTC) miners are back in business, New report by CryptoQuant analysts says

Bitcoin’s hashrate hit a new all-time high earlier this week, recovering from an 8.5% drawdown in July. At the same time, the miner hash price has plunged to a record low of $0.038 per TH/s. This metric, which measures how much a miner can earn per amount of mining computing power, hovered around $0.05 per TH/s shortly after the Bitcoin halving in April.

However, as BTC briefly slipped to $49,500, outflows from smaller miner cohorts surged to 19,000 BTC on August 5, marking the highest level since March 18. This suggests that some miners sold a portion of their holdings as their average profit margins reduced to 25%, the lowest since January 22.

During the sale of their reserves, some miners realized losses due to bitcoin’s dip in value. They saw the largest daily loss since May 29, a whopping $22 million.

On the other hand, large Bitcoin mining entities have increased their holdings through consistent accumulation. In contrast, the Bitcoin holdings of smaller entities have bottomed. These miners may record more declines in their reserves as on-chain analysis shows more selling activity due to low profitability.

CryptoQuant’s Miner Profit/Loss Sustainability metric indicates that miners are still underpaid, especially as mining difficulty is on the rise and prices have slumped.

On the brighter side, miner capitulation events and higher miner outflows usually occur near local bottoms for BTC prices during bull cycles. This means that a bitcoin rally may be on the horizon.