On-chain data shows that the 7-day Bitcoin mining hash rate has continued to reach an all-time high despite the FUD rampant in the market.
The 7-day Bitcoin mining hash rate has reached a new all-time high
According to data from the on-chain analytics company glassThe 7-day hash rate reached a new ATH of 381 EH/s. The “mining hash rate” is an indicator that measures the total amount of computing power connected to the Bitcoin blockchain by miners.
When the value of this metric goes up, it means that miners are bringing more machines online on the network at the moment. This trend may be a sign that miners are currently finding it attractive to mine on the blockchain.
On the other hand, lower values of the indicator indicate that some miners may be leaving the chain now. This kind of trend may indicate that it is now unprofitable for at least some miners to mine on the BTC network.
The hash itself can also tell us information about the security of the blockchain. Typically, the higher the metric value, the tighter the network security as there are now 51% more devices that need to be hacked to complete a hack. Obviously this would given that new hashs being added to the network are decentralized.
Now, here is a chart showing the trend in the bitcoin mining hash rate of the 7-day moving average (MA) over the past few years:
The 7-day MA value of the metric seems to have been trending up in recent days | Source: Glassnode on Twitter
As shown in the chart above, the 7-day MA Bitcoin Mining Hash Rate has been in an overall bullish trend for a long time now, but the rally has been particularly sharp over the past few months.
This rapid growth of the index is not surprising, as it came with a surge in the price of the cryptocurrency. Miners depend on the dollar value of their rewards in order to pay their bills, so a higher price always results in a higher revenue as well.
Typically, the largest miners expand their facilities in such periods in order to take advantage of this additional profit, thus increasing the mining hash value.
Interestingly, the rally in the metric has continued in the past few weeks, even though bitcoin has taken a notable hit. There was also the emergence of some new FUD in the market during this period, in the form of a lawsuit against the SEC and Coinbase by the Securities and Exchange Commission.
The miners seem not particularly bothered by the current market uncertainty, as they are just continuing to increase investment in their facilities, perhaps with a long-term view in mind. After the recent jump in the 7-day mining hashrate, the index hit a new all-time high of 381 EH/s.
BTC price
At the time of writing, Bitcoin was trading at around $25,800, down 3% in the past week.
BTC has gone down in the last few days | Source: BTCUSD on TradingView
Featured image by Brian Wangenheim on Unsplash.com, charts from TradingView.com, Glassnode.com