On-chain data shows Bitcoin mining Hashrate has seen a significant jump since the mid-March lows, a sign that miners are coming back.
Bitcoin Hashrate Recovers Most of Previous Drops
“Hashrate” refers to an index that keeps track of the total amount of computing power that miners have connected to the network. It is measured in hashes per second (H/s), or more specifically, in exahashes per second (EH/s). This metric can serve as a proxy for sentiment among miners; an increase in value can mean that the chain’s verifiers find the network profitable for mining, while its value decrease can suggest that the group is leaving the chain for now.
As the chart below from Blockchain.com shows, the 7-day average value of Bitcoin Hashrate saw a decline during the first half of March.
Looks like the value of the metric has shot up in recent days | Source: Blockchain.com
Interestingly, this drop in the metric has come alongside a surge in the BTC spot price recovery. In general, miners tend to follow the value of cryptocurrency as their income is directly related to it. However, this time both of them showed differences.
Some speculate that the decline may be due to the changes the mining industry has been seeing recently, with many public mining companies choosing to focus on the growing AI/datacenter business. Since bottoming at 920.8 EH/s on March 19th, however, Hashrate has made a significant recovery, raising doubts about the theory.
Today, the 7-day average value of the Hashrate sits at 1,036.6 EH/s, which is about 12.5% from the low seen at the beginning of the month. The metric is still not well back from the 1,083.9 EH/s high since March 1, but if the recent trajectory continues, a full recovery may be possible.
It remains to be seen, however, how the Hashrate will develop in the near future, considering the consolidation phase Bitcoin is stuck in during the war of uncertainty and miners making a push into AI.
In other news, Bitcoin spot-traded funds (ETFs) have seen a sequence of positive network flows in the past, but the recent week has broken the trend, according to data from SoSoValue.
The data for the weekly netflows for US BTC spot ETFs over their history | Source: SoSoValue
As shown in the graph above, US Bitcoin spot ETFs have seen net inflows for four straight weeks before the latest, which means that demand has been flowing into the cryptocurrency through these funds. Last week, however, that trend changed as more than $296 million left the cars instead.
BTC price
At the time of writing, Bitcoin is trading around $67,600, down about 5% from last week.
The trend in the price of the coin over the last five days | Source: BTCUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
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