Bitcoin Hashrate Makes new ATH as Price Nears US$40,000

The Bitcoin (BTC) network hashrate has significantly surged to another level not seen since the cryptocurrency’s history. Noteworthily, hashrate is the measure of the entire processing/hashing power on the BTC network. So, more mining machines are going online on the cryptocurrency’s network. Meanwhile, this is coming at the time when Bitcoin is posting massive price growth. 

However, with every increase in BTC hashrate, the mining difficulty will also increase accordingly to balance the new BTC supply rate. 

Bitcoin Miners are Getting More Bullish

Bitcoin network hashrate broke all-time-high (7d ma), according to data from Glassnode, an on-chain analytics platform. A further glance at Blockchain.com, the crypto’s network explorer, revealed the hashrate to be 148.727 million terahashes per second or TH/s. The data shows that Bitcoin miners are deploying more advanced mining machines on the network.

This was more likely caused by the growing price of Bitcoin since the past month, December 2020.

Since leading cryptocurrency broke through the US$20,000 level, it has continued to rise gradually. As of January 1, the cryptocurrency closed the day at US$$29,374, according to Coinmarketcap. Fast forward to the present, the price of Bitcoin is well above US$30,000, nearing the US$40,000 level with its current price around US$38,000 at the time of writing.

With such a price, BTC’s market capitalization sits above US$717 billion, which is the major contributor to the US$1 trillion global digital currency market.

BTC Mining Profitability

Following the price performance of Bitcoin, it’s safe to mention that the BTC mining business is currently profitable. Miners are making more profits due to the growing price of the cryptocurrency. Plausibly, this is causing them to deploy more machines on the network, thereby spiking the overall hashrate at 148.727 million TH/s.

Meanwhile, it shouldn’t be a surprise that the next BTC mining difficulty adjustment will rise to an all-time high to balance the ease with BTC mining.