Summary:
Hashprice is currently above $62 PH/s, the highest since mid-December.
Bitcoin's price has surged to over $100,000, a 56% increase in three months.
Miner fees are averaging 12 BTC per day, the highest in over a month.
The halving in April 2024 caused hashprice to drop from $115 PH/s.
Miners are in a healthier position with increased holdings since the start of the year.
Bitcoin Hashprice Hits One Month Highs, A Bullish Signal for Miners
A combination of rising transaction fees and a buoyant bitcoin price has given miners some relief.
Hashprice, a metric coined by Luxor that gauges mining profitability, estimates the daily income of miners relative to their estimated contribution to the Bitcoin network's hash power. In simpler terms, it reflects the expected value miners can earn from 1 TH/s of hashing power per day.
According to Glassnode, hashprice is currently hovering above $62 PH/s, marking its highest level since mid-December.
What's driving this increase in hashprice? Bitcoin (BTC) has surged to well over $100,000, a 56% increase in just three months, providing miners with some much-needed relief. Additionally, the network has seen a slight increase in miner fees, averaging roughly 12 BTC per day, the highest in over a month, partly due to increased network inscription activity.
Following the halving event in April 2024, where mining rewards were cut in half, hashprice dropped from around $115 PH/s. This led to challenges for miners, particularly in share price appreciation last year. However, since November, mining revenue has reclaimed the 365-simple moving average (SMA), which is historically a bullish signal.
Despite the hash rate reaching all-time highs, which increases network difficulty and affects mining profitability, miners are reportedly in a healthier position than in previous years. Andre Dragosch, European head of research at Bitwise, noted a recent decline in network hash rate since the early January highs, while Bitcoin's price and transaction count have increased. This combination has led to a recovery in hash price, incentivizing miners to ramp up their operations.
Dragosch also commented that Bitcoin miners appear to be well-capitalized, as their holdings have increased since the beginning of the year, indicating that they are selling less Bitcoin than they mine daily.
Comments