miners are working tirelessly, leading to an all-time high (ATH) in hash power.
- The difficulty level of Bitcoin reached a four-month peak on August 26.
- Despite increased production, miners are moving away from selling trends. Experts believe this is due to expectations of a price increase.
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Bitcoin, the king of cryptocurrencies, is currently trading at $26,000. Despite the lackluster interest, the price largely remained flat over the weekend. Meanwhile, Bitcoin miners have set a new record. But what impact will this have on the price?
Bitcoin Mining Activity
Despite the falling price, Bitcoin miners are ramping up their activities with about six months left until the next halving. The activities of Bitcoin miners provide vital clues about the health of the network and the profitability level in the mining sector, which is why they are closely monitored by experts in the crypto ecosystem. According to a graph published by on-chain analysis company Glassnode, the network hash rate reached its highest level in the last four months on August 26.
Bitcoin Hash Rate
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The surge in the hash rate is an extremely positive development for the security of the network. More miners actively mining contributes to decentralization. Participation of more miners or use of more efficient machines usually leads to an increase in this metric.
Bitcoin Mining Difficulty
The jump in the hash rate pushed the mining difficulty to an all-time high last week. Mining difficulty is automatically adjusted approximately every two weeks to keep the total block time at 10 minutes.
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Analysts from Bitfinex revealed that the increase in mining difficulty is due to miners’ bullish expectations for Bitcoin. Miners are among the largest investor groups and their market history is much older than the average investor. Their experience, knowledge accumulation, and advanced analysis capacity give hope to investors. Analysts also noted that miners are postponing selling their assets due to their belief in BTC’s growth potential. This is supported by Glassnode’s data, which shows that the total supply held in miner addresses reached a high level of 1.83 million as of August 26. It should not be forgotten that miners often make cash outflows to cover mining and energy costs. Delays in liquidations usually mean that they expect the Bitcoin price to strengthen further.