{"id":653732,"date":"2024-11-19T11:00:59","date_gmt":"2024-11-19T11:00:59","guid":{"rendered":"https:\/\/wncen.com\/?p=653732"},"modified":"2024-11-18T17:26:30","modified_gmt":"2024-11-18T17:26:30","slug":"bitcoin-still-room-to-rise-quant-explains-why","status":"publish","type":"post","link":"https:\/\/wncen.com\/bitcoin-news\/bitcoin-still-room-to-rise-quant-explains-why\/","title":{"rendered":"Bitcoin Hashrate Falls Off, Miners Expecting Pause In Bull Run?"},"content":{"rendered":"

On-chain data shows the Bitcoin Hashrate has seen a setback recently, a potential indication that miners may not believe the asset’s run would last.<\/p>\n

Bitcoin Mining Hashrate Has Declined Since Its All-Time High<\/h2>\n

The “Hashrate<\/a>” refers to a metric that keeps track of the miners’ total computing power currently attached to the Bitcoin network. This indicator’s value is measured in terms of hashes per second (H\/s) or the larger and more practical, terahashes per second (TH\/s).<\/p>\n

Related Reading: Is $135,000 Bitcoin\u2019s Current Ceiling? This Model Says So<\/a><\/div>\n

When the value of this metric registers an increase, it means new miners are joining the network, and old ones are expanding their farms. Such a trend implies that blockchain is a lucrative opportunity for these chain validators.<\/p>\n

On the other hand, the declining indicator suggests some miners have decided to disconnect their rigs from the network, potentially because they can’t break even anymore.<\/p>\n

Now, here is a chart that shows the trend in the 7-day average of the Bitcoin Mining Hashrate over the past year:<\/p>\n

\"Bitcoin
The 7-day value of the metric seems to have been on a decline in recent weeks | Source: Blockchain.com<\/a><\/figcaption><\/figure>\n

As displayed in the above graph, the 7-day average Bitcoin Hashrate had sharply moved up earlier and set new records. However, the metric has dropped since peaking near the 755 million TH\/s mark at the start of this month.<\/p>\n

The earlier uptrend in the indicator\u00a0resulted from the positive price action that the asset had been enjoying, as the price is directly linked to the\u00a0miners’ revenue<\/a><\/span>.<\/p>\n

There are two ways that these chain validators make their income: the transaction fees and the block subsidy. The former is dependent on traffic conditions and can drastically change from day to day. The latter, on the other hand, has very specific constraints attached to it.<\/p>\n

The block subsidy remains fixed in BTC value for about four years, at the end of which an event called the Halving<\/a> cuts it exactly in half. These rewards are also given out at a more or less constant rate, meaning miners’ daily block subsidy income in BTC terms always remains quite predictable.<\/p>\n

Related Reading: Dogecoin Price Down 7%, But Whales Continue To Buy<\/a><\/div>\n

However, one variable is free to change, and it’s the USD value of these rewards. Whenever the price rises, so does the block subsidy revenue of the miners. This is why the Hashrate tends to see growth in bullish periods.<\/p>\n

Bitcoin has been exploring new highs recently, but the Hashrate has interestingly stayed muted. The indicator is around 723 million, which means it has declined by more than 4% since the peak. This trend could signal that the miners expect the current rally to face an obstacle.<\/p>\n

BTC Price<\/h2>\n

At the time of writing, Bitcoin is floating about $91,900, up over 8% in the last seven days.<\/p>\n

\"Bitcoin
The price of the coin appears to have been moving sideways recently | Source: BTCUSDT on TradingView<\/a><\/figcaption><\/figure>\n
Featured image from Dall-E, Blockchain.com, chart from TradingView.com<\/div>\n","protected":false},"excerpt":{"rendered":"

On-chain data shows the Bitcoin Hashrate has seen a setback recently, a potential indication that miners may not believe the asset’s run would last. Bitcoin Mining Hashrate Has Declined Since Its All-Time High The “Hashrate” refers to a metric that keeps track of the miners’ total computing power currently attached to the Bitcoin network. This indicator’s value is measured in terms of hashes per second (H\/s) or the larger and more practical, terahashes per second (TH\/s). Related Reading: Is $135,000 Bitcoin\u2019s Current Ceiling? This Model Says So When the value of this metric registers an increase, it means new miners are joining the network, and old ones are expanding their farms. Such a trend implies that blockchain is a lucrative opportunity for these chain validators. On the other hand, the declining indicator suggests some miners have decided to disconnect their rigs from the network, potentially because they can’t break even anymore. Now, here is a chart that shows the trend in the 7-day average of the Bitcoin Mining Hashrate over the past year: As displayed in the above graph, the 7-day average Bitcoin Hashrate had sharply moved up earlier and set new records. However, the metric has dropped since peaking near the 755 million TH\/s mark at the start of this month. The earlier uptrend in the indicator\u00a0resulted from the positive price action that the asset had been enjoying, as the price is directly linked to the\u00a0miners’ revenue. There are two ways that these chain validators make their income: the transaction fees and the block subsidy. The former is dependent on traffic conditions and can drastically change from day to day. The latter, on the other hand, has very specific constraints attached to it. The block subsidy remains fixed in BTC value for about four years, at the end of which an event called the Halving cuts it exactly in half. These rewards are also given out at a more or less constant rate, meaning miners’ daily block subsidy income in BTC terms always remains quite predictable. Related Reading: Dogecoin Price Down 7%, But Whales Continue To Buy However, one variable is free to change, and it’s the USD value of these rewards. Whenever the price rises, so does the block subsidy revenue of the miners. This is why the Hashrate tends to see growth in bullish periods. Bitcoin has been exploring new highs recently, but the Hashrate has interestingly stayed muted. The indicator is around 723 million, which means it has declined by more than 4% since the peak. This trend could signal that the miners expect the current rally to face an obstacle. BTC Price At the time of writing, Bitcoin is floating about $91,900, up over 8% in the last seven days. Featured image from Dall-E, Blockchain.com, chart from TradingView.com<\/p>\n","protected":false},"author":542,"featured_media":653733,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[88240],"tags":[428,85533,55860,639,640,6481,1119,78790],"class_list":["post-653732","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-bull-run","tag-bitcoin-hashrate","tag-bitcoin-miners","tag-bitcoin-mining","tag-bitcoin-rally","tag-btc","tag-btcusdt"],"acf":[],"yoast_head":"\nBitcoin Hashrate Falls Off, Miners Expecting Pause In Bull Run?<\/title>\n<meta name=\"description\" content=\"On-chain data shows the Bitcoin Hashrate has seen a setback, a potential indication that miners may not believe the asset's run would last.\" \/>\n<meta name=\"robots\" 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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor\u2019s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn\u2019t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn\u2019t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.","sameAs":["https:\/\/www.linkedin.com\/in\/keshavverma29\/","https:\/\/x.com\/https:\/\/twitter.com\/keshavvarma29"],"url":"https:\/\/wncen.com\/author\/hououinkyouma29\/"}]}},"parsely":{"version":"1.1.0","meta":{"@context":"https:\/\/schema.org","@type":"NewsArticle","headline":"Bitcoin Hashrate Falls Off, Miners Expecting Pause In Bull Run?","url":"http:\/\/wncen.com\/bitcoin-news\/bitcoin-still-room-to-rise-quant-explains-why\/","mainEntityOfPage":{"@type":"WebPage","@id":"http:\/\/wncen.com\/bitcoin-news\/bitcoin-still-room-to-rise-quant-explains-why\/"},"thumbnailUrl":"https:\/\/wncen.com\/wp-content\/uploads\/2024\/11\/btc_22f0b3.png?resize=200%2C200","image":{"@type":"ImageObject","url":"https:\/\/wncen.com\/wp-content\/uploads\/2024\/11\/btc_22f0b3.png?fit=1792%2C1024"},"articleSection":"Bitcoin News","author":[{"@type":"Person","name":"Keshav Verma"}],"creator":["Keshav Verma"],"publisher":{"@type":"Organization","name":"NewsBTC","logo":"https:\/\/wncen.com\/wp-content\/uploads\/2020\/06\/cropped-cropped-cropped-favicon.png?w=32"},"keywords":["bitcoin","bitcoin bull run","bitcoin hashrate","bitcoin miners","bitcoin mining","bitcoin rally","btc","btcusdt"],"dateCreated":"2024-11-19T11:00:59Z","datePublished":"2024-11-19T11:00:59Z","dateModified":"2024-11-19T11:00:59Z"},"rendered":"<script type=\"application\/ld+json\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@type\":\"NewsArticle\",\"headline\":\"Bitcoin Hashrate Falls Off, Miners Expecting Pause In Bull Run?\",\"url\":\"http:\\\/\\\/wncen.com\\\/bitcoin-news\\\/bitcoin-still-room-to-rise-quant-explains-why\\\/\",\"mainEntityOfPage\":{\"@type\":\"WebPage\",\"@id\":\"http:\\\/\\\/wncen.com\\\/bitcoin-news\\\/bitcoin-still-room-to-rise-quant-explains-why\\\/\"},\"thumbnailUrl\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2024\\\/11\\\/btc_22f0b3.png?resize=200%2C200\",\"image\":{\"@type\":\"ImageObject\",\"url\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2024\\\/11\\\/btc_22f0b3.png?fit=1792%2C1024\"},\"articleSection\":\"Bitcoin News\",\"author\":[{\"@type\":\"Person\",\"name\":\"Keshav Verma\"}],\"creator\":[\"Keshav Verma\"],\"publisher\":{\"@type\":\"Organization\",\"name\":\"NewsBTC\",\"logo\":\"https:\\\/\\\/wncen.com\\\/wp-content\\\/uploads\\\/2020\\\/06\\\/cropped-cropped-cropped-favicon.png?w=32\"},\"keywords\":[\"bitcoin\",\"bitcoin bull run\",\"bitcoin hashrate\",\"bitcoin miners\",\"bitcoin mining\",\"bitcoin rally\",\"btc\",\"btcusdt\"],\"dateCreated\":\"2024-11-19T11:00:59Z\",\"datePublished\":\"2024-11-19T11:00:59Z\",\"dateModified\":\"2024-11-19T11:00:59Z\"}<\/script>","tracker_url":"https:\/\/cdn.parsely.com\/keys\/wncen.com\/p.js"},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/wncen.com\/wp-content\/uploads\/2024\/11\/btc_22f0b3.png?fit=1792%2C1024","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts\/653732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/users\/542"}],"replies":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/comments?post=653732"}],"version-history":[{"count":5,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts\/653732\/revisions"}],"predecessor-version":[{"id":653762,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/posts\/653732\/revisions\/653762"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/media\/653733"}],"wp:attachment":[{"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/media?parent=653732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/categories?post=653732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wncen.com\/wp-json\/wp\/v2\/tags?post=653732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}