Bitcoin’s hashrate is posting impressive numbers, but when will BTC’s price do so?

by James · October 7, 2022

According to a chirping by Messari (cryptanalysis platform), Bitcoins hashrate has grown significantly compared to Q2.

Obviously, the growth in BTC’s hashrate would end up doing BTC the network more secure. However, if BTC’If the price falls further, a big selling pressure from the miners cannot be ruled out.

Here is AMBCryptos Bitcoin price prediction for 2022-2023

Let’s “hash” this out

In particular, Bitcoin’s hashrate, which grew by 6% since Q2 hit a new all-time high at press time.

The increasing hashrate can be attributed to the emergence of new ASICs (devices that mine Bitcoin). Well, these new ASICs have not only improved the hashrate of Bitcoin, but have also helped reduce the energy consumption for mining BTC.

Another reason for the improvement in Bitcoin’s network was attributed to China banning Bitcoin mining. This led to a mining exodus where miners moved to other parts of the world.

Source: Messari

Although the Bitcoin network became more secure over the past quarter, Bitcoin‘s prices were on the way down. An increasing hashrate and a falling price can put a lot of pressure on miners. It may therefore force them to sell Bitcoin to reduce losses.

As can be seen from the image below, miners’ earnings were very volatile in the last month. It has dropped in value quite a bit in recent days.

This uncertainty regarding mining revenue can cause miners to shy away from mining Bitcoin and move on to other proof-of-work alternatives.

Source: Glassnode

But it’s not just miners who have been affected by Bitcoin’s price action. Even Bitcoin holders have been negatively affected to a great extent. Consider this – the total supply of Bitcoin in profit has been mostly on the downside for the past few weeks.

A decrease in the total offer in profit can be perceived as a bearish indicator by potential investors. It can also put a lot of sales pressure on current HODLers.

Source: Glassnode

Nevertheless, Bitcoin grew by 2.25% in the last week. And it was trading at $19,922 at press time. Bitcoin’s volatility slowed down a bit. This indicates that the price, at press time, was not subject to large fluctuations.

If Bitcoin continues its positive momentum, it could turn things around for traders and miners alike.