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Bitcoin miners breathe easier as hash rate nears record highs Bitcoin miners breathe easier as hash rate nears record highs

Bitcoin miners breathe easier as hash rate nears record highs

Data via Glassnode

Bitcoin miners see daylight as hash ribbons appear to signal an end to a tough phase of capitulation.

Quick Take

The analysis of Bitcoin’s hash rate through the lens of hash ribbons highlights a significant shift in the crypto-mining landscape. These ribbons, a market indicator designed to predict Bitcoin’s bottom when mining becomes too costly compared to the rewards, suggest that the worst phase of miner capitulation has subsided. A key signal to this trend is the 30-day moving average (MA) of the hash rate crossing above the 60-day MA, a transition marked by the shift from light red to dark red areas.

Current difficulty levels align with this analysis, forecasting an increase of approximately 5 to 7% in Bitcoin’s value, according to Newhedge. However, this projection is not yet set in stone – there is still a week remaining for this difficult epoch to adjust. The rising hash rate, now nearing an all-time high at approximately 383 terahashes per second (Th/s), offers a promising prospect for miners. This trend alleviates the previous burden on miners, indicating a healthier ecosystem for Bitcoin mining operations.

Hash Rate: (Source: Glassnode)
Hash Rate: (Source: Glassnode)
Hash Ribbon: (Source: Glassnode)
Hash Ribbon: (Source: Glassnode)

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