Source: Pexels
Bitcoin’s (BTC) hash rate is at an all-time high few months away from the next halving with bulls anticipating another run to wipe the losses of the bear market.
According to data from blockchain.com, the Bitcoin hash rate hit 491 exahashes per second (TH/s) on Nov 22 increasing the amount of mining computations made by high-end computers.
An increase in hashrate points to the fact that miners now utilize more efficient equipment to make the most of their operations because there’s a sharp increase in mining activity.
New all time high #hashrate #bitcoin pic.twitter.com/4iD4VL2sYo
— PreacherBTC (@PreacherBTC) November 20, 2023
The higher the hash rate, the more difficult it is to disrupt the network as malicious actors will need more computing power to garner over 50% of the network’s strength.
This year has recorded several new hash rate all-time highs on the Bitcoin Network even as the ecosystem struggled coming off last year’s riddled year industry collapses and plunging asset prices with the market leader trading about 57% lower.
Good turn in the market
Although this year has marked a significant price increase of over 100% year-to-date (YTD), BTC miners struggled to maintain production and stay afloat with the surge in hash rate leading to miners pivoting to other areas or selling their Bitcoin reserves.
BTC hashrate is now up 169% YTD and has moved up over 12% in the past 24 hours. Several analysts believe the next price correction could see BTC fall between $31,000 and $31,500 due to previous data.
The present state of the market has been described as favorable to most miners due to the increase in BTC in the past few months.
At the moment, miners’ revenue has surged to the highest point in over 18 months with the total amount generated reported as $46.8 million as miners take home 6.25 BTC for every successful mined block.
The shift in market sentiments particularly the influx of institutional investors led to a massive price increase. Signs of an uptick could be seen when BTC crossed the $31,000 mark after BlackRock filed an ETF application to the Securities and Exchange Commission (SEC).
This led to multiple firms filing and editing applications for a spot BTC ETF increasing institutional demand for Bitcoin products and spiraling into other crypto assets.
Halving event: Sink or swim
The upcoming Bitcoin halving will be the fourth and it is predicted to take place in April. Miners often look up to the event as a bullish indicator as it deals with the inflationary effect of the asset.
#Bitcoin halving soon. pic.twitter.com/xp4mWyMKkD
— CZ Binance (@cz_binance) November 19, 2023
In anticipation of April, miners are stacking up high-end equipment to be in pole position after the event. This has led to several acquisitions in the mining sector in recent months.
While these come with benefits, the disadvantage comes in the high energy usage of miners who are constantly upgrading their equipment drawing the attention of climate regulators and activists to the market.
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