According to data from blockchain analytics firm Blockchain.com, the world’s flagship cryptocurrency has hit a new hash rate milestone. BTC has struggled to catalyze a considerable upswing in recent weeks but managed to hit a new all-time high (ATH) in its seven-day average hash rate.
BTC Hash Rate Hits ATH | Source Blockchain.com
The new peak is at 139.815 TH/s, and it comes just over a month since the last ATH for its seven-day average hash rate on August 15.
Back then, the hash rate reached 129.075 TH/s, which was an improvement from its previous record set at 126.91 TH/s on July 28.
The fact that BTC miners are continuing to produce hashes at record high levels indicates that they have greater expectations regarding its profitability.
The king coin is currently struggling to break above $11K as heavy selling pressure drives prices down.
Could Surging Hash Rate Boost Bitcoin Prices?
Historically, the correlation between the BTC hash rate and its price has been high. Some analysts believe that a rising hash rate points to an imminent uptick in price.
Jeremy Britton, the CFO Boston Trading Co., explained earlier this year:
“As with mining any scarce resource (e.g. silver or gold), if mining becomes more difficult or more expensive, the price of the underlying asset will increase.”
Indeed, miners wouldn’t invest tremendous resources to input increased hash power into the BTC network if they didn’t believe their endeavors would be profitable.
Miners are dedicating increased computing power miners to Bitcoin mining just as more institutional investors spend significant amounts to buy the coin.
Last week, Nasdaq-listed Company Microstrategy bought a whooping 17K BTC in 24 hours. Since the firm decided to make BTC its primary reserve currency in August, it has purchased over 38,250 coins for $425 million.
The CEO of MicroStrategy reiterated his firm belief in the dominance of BTC as an investment vehicle. Michael Saylor tweeted on Sep. 20 that he favors BTC to altcoins such as ETH and stablecoins such as USDT.
He added that the coin’s prominence had grown continuously since Dec 2017, as per data from the analytics firm Bitcoin Dominance. Such belief in BTC’s potential has seemingly spurred miners to continue investing in its network’s hash rate.
BTC Sees Massive Selloff from Miners
Miners have offloaded a substantial amount of coins in the past two months, according to data from CryptoQuant. This trend is likely attributable to miners selling their holdings to cover costs and purchase modern mining hardware.
The selling pressure from miners led to the BTC price plummeting from highs at $12,486 on August 17, to lows of $9,813 on September 5. That plunge also coincided with a downturn in the entire crypto market amid rising uncertainty in stock markets.
However, the increasing mining power directed toward mining BTC in recent days implies that miners remain unfazed by the ongoing market downturn.