Bitcoin’s (BTC) hashrate hit an all-time high as markets plummeted in response to the expected rate hike. According to data from Coinwarz, BTC’s hash rate reached 325.11 EH/s at block 758,138 on October 11.
While the Bitcoin price seems to be falling, the hash rate seems to be moving in the opposite direction. The new all-time high came on October 5, one week after the peak a week earlier. However, at press time, the hash rate dropped to 281.10 EH/s.
Why does the hash rate of BTC reach new ATHs so often?
Koinfinans.com As we reported, there can be several reasons for the Bitcoin hash rate to increase. First, it may have something to do with the falling prices of GPUs. The processors of computer graphics cards are called Graphics Processing Unit (GPU). The global chip shortage in early 2022 wasn’t just a concern for miners. With this shortage problem seemingly over, mining rig prices also fell. This may have led to more miners joining the network.
The second reason could be the rise of crypto-friendly regulations in many areas. Kazakhstan, Canada and Germany, among other countries, have become favorite spots for miners to set up their operations. Many new miners from the above-mentioned domains have also joined the network.
Third, Ethereum’s move to a Proof-of-Stake (PoS) consensus method may have pushed ETH miners onto the Bitcoin network and led to a spike in the hash rate.
What is the situation with Bitcoin miners?
An increased hash rate means that the Bitcoin network is more secure than ever. However, an increase in mining difficulty does not mean that miners earn more.
Network difficulty also hit an all-time high of 33,739t, according to data on Blockchain.com.
Also, miners’ income continues to move sideways first.
All data means more difficulty for Bitcoin mining and less income for miners. If profitability becomes an issue at some point, it could potentially force miners to shut down their rigs. Doing so will reduce the difficulty again and prompt them to unlock their gear once again.
However, BTC prices continue to drop as investors prepare for another rate hike from the US Fed. At press time, Bitcoin (BTC) is trading at $19,084, down 1.34% in the last 24 hours.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.