Miners Increase Bitcoin’s Hashrate After Difficulty Decline Eases Pressure

While Bitcoin’s hashprice has been languishing below $44 per petahash per second (PH/s) each day, the network’s hashrate is beginning to climb once more.

Bitcoin’s hashrate is increasing once again as the network’s computational power has been rising during the past eight days. On Aug. 9, the hashrate was around 612 exahash per second (EH/s), but by Aug. 17, it increased to 637 EH/s. This shows an addition of 25 EH/s over eight days.

Miners Ramp Up Hashrate as Difficulty Decline Easing Pressure

Over the past week, bitcoin miners have increased their computational power, especially after the Aug. 14 difficulty adjustment. The network’s difficulty decreased by 4.19% from 90.66 trillion to 86.87 trillion, providing some relief after the 10.5% increase on July 31.

Just days earlier on July 25, the seven-day simple moving average (SMA) showed BTC’s hashpower peaking at 677 EH/s. However, by Aug. 9, it had slipped to 612 EH/s.

In the last eight days, the hashrate went up by 25 EH/s, with a significant boost coming after the recent difficulty decrease. On that day, the hashrate was at 624 EH/s, indicating that 13 EH/s came online in just 72 hours.

Bitcoin’s price and the low onchain fees paid to miners have contributed to an exceptionally low hashprice, which reflects the daily expected value of 1 PH/s of SHA256 hashpower mining BTC.

Before the halving, hashprice hit two lows in November 2022 following the FTX collapse (rates dropped to $56 per PH/s), and in mid-October when it dipped to $59 per PH/s.

The current rate is below $44 per PH/s, and the low of $35 per PH/s on Aug. 5 marks the lowest levels the network has ever seen. However, miners enjoyed a brief respite with a higher hashprice in March and April before the fourth halving.

Miners are also preparing for the reward halving by purchasing tens of thousands of more efficient mining rigs that deliver higher terahash per second (TH/s) output. Some are diversifying into artificial intelligence (AI) deals, and several publicly listed mining firms have secured billions in cash through private offerings of senior convertible notes. But this runway won’t last forever, and the market will need to shift for miners to thrive once again.

What do you think about the increased hashrate over the past eight days? Share your thoughts and opinions about this subject in the comments section below.

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