Galaxy Digital Forecasts a Better and More Profitable Environment for Bitcoin Miners in the Second Half of 2024

Galaxy Digital has forecasted a better and more profitable environment for Bitcoin [BTC] miners in the second half of 2024.

Galaxy Digital recently forecasted a better environment for Bitcoin [BTC] miners in the latter half of 2024, and as a result, the firm adjusted its initial Bitcoin network hashrate target.

According to the report, public miners currently contribute 13% to the network hashrate, which could increase to 15%-30% by year's end. Using a base case of 25% would result in a hashrate projection of 741 EH.

Galaxy Digital had initially estimated a range of 675 EH to 725 EH for the end-of-2024 hashrate target, which they are now revising to between 725 EH and 775 EH.

For perspective, hashrate refers to the computational power used by BTC miners to solve the next block and secure the network. A rising hashrate indicates greater network security and is a sign that more miners are participating in the network.

The report also highlighted the recovery in the hashrate, which began coinciding with the tapering of the BTC miner crisis (profitability issues).

The network hashrate dipped to a low of 550 EH towards the end of June. Since then, however, it has reversed and trended higher, with the same noting a figure of around 640 EH on 1 August.

In fact, according to CryptoQuant’s data, the hashrate growth also followed a recent price recovery after a massive decline to below $54k in June. The hashrate trend is now inching closer to its record high on the charts.

“Bitcoin network hashrate is less than 2% from all-time-high. Miners expanding as prices recover.”

The aforementioned positive outlook for Bitcoin’s hashrate is good news for the crypto’s price. It must be noted though that at this time, investor sentiment is fairly cautious about the U.S economy in the short term. The effects of this caution might be felt on the crypto-market too.