Bitcoin’s hash rate has continued its recent rally, reaching exciting new highs. The leading digital asset by market capitalization has seen a significant rally, creating positive sentiment. This led to more miners connecting to the Bitcoin network, and it hit a new all-time high of 400 EH/s in the last 48 hours.
Bitcoin hash rate is touching a new high
The Bitcoin hash rate has been increasing continuously since the beginning of the year. Earlier in the week, the network added 40 EH/s to reach a peak of 350 EH/s. However, hours after the mining difficulty adjustment on March 23rd, the hash rate skyrocketed to astronomical levels. Between March 23 and March 24, the bitcoin hash rate hit a new high of 400 EH/s, according to data from mempul.
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This development indicates two things: the security of the network has increased, and miners are confident in the long-term profitability of Bitcoin. Miners who have been an integral part of the network since its inception have continued to ramp up their support for the leading coin due to the recent rally.
Additionally, Bitcoin mining difficulty has reached a record high and now stands at $46.84 trillion. This represents an increase of 7.5% from its previous levels, which is related to the gradual increase in the hash rate over the period.
Why does the hash rate increase?
The rise in hashing difficulty is largely due to the rise in the price of BTC, which has drawn miners to the Bitcoin network. BTC has seen an increase of more than 50% in 2023, reaching a peak of $28,000 earlier in the week.
This price hike encouraged miners to connect their mining equipment to the network. It should be noted that many miners left the Bitcoin network in the wake of the extended bear market in 2022.
With the recovery of the market, the profitability of mining has increased, although it is still far from the ideal mark. However, it does indicate that miners are back to make a profit from the network. One of the main indicators of this is the 20% increase in the retail price in the past week.
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Hash price is a metric that indicates the average price that mining equipment on the bitcoin network fetch per day. Currently, the hash rate is around $0.077/TH/day, according to data from hash index. This may decrease in the coming days as higher mining difficulty means stiffer competition for mining rewards on the Bitcoin network.
With the increased power coming from the miners’ computing machines, the hash rate has continued to rise. It, in turn, helps strengthen the Bitcoin network, which is an overall win for the asset.
Bitcoin price
At the time of writing, Bitcoin has seen a market correction and is trading at NT$27,455. The current market perception is that we are in a bull market, and Bitcoin could be on its way to $30,000 in the coming weeks.
Please note: the content is educational and should not be considered investment advice. Featured image from Unsplash, charts from Mempool, Trading View.