Bitcoin Miners to Lead the BTC Recovery

Whilst Bitcoin continues to stay range bound, hovering and wobbling between $30,000 and $40,000 for the last few months...

Bitcoin Miners to Lead the BTC Recovery

24.10.2021
Bitcoin Miners to Lead the BTC Recovery

Whilst Bitcoin continues to stay range bound, hovering and wobbling between $30,000 and $40,000 for the last few months, there is some light at the end of the tunnel and a strong hint that better times are ahead for Bitcoin.

Bitcoin’s daily mining revenue per terrascond (TH/s) has gradually recovered to $0.27. This is the same level when bitcoin was at the $45,000 level in mid-May, and marks a steady increase from May 30th’s low of $0.20.

Thanks to the Chinese crackdown on crypto over the last few months there is far less competition amongst miners. Incredibly, approximately 90 million TH/s of computing power on the bitcoin network disappeared since mid-May, accounting for around 50% of the network's total hash rate.

The Bitcoin network hashrate is still over 25% down from the same time a year ago, but the trend is more than encouraging. The network difficulty of bitcoin, a key measure of how difficult it is to actually mine btc, fell from a record 25 trillion in May to 19.9 trillion at the end of June.

After the shutdown in China's Xinjiang and Sichuan provinces, the second hand market is now awash with second hand mining equipment. What we are seeing now is a huge spike in supply of millions of bitcoin ASIC miners that over the last couple of months would have been unplugged. There is an influx of new miners setting up mining farms outside of China, which is expected to continue for the foreseeable future.

Why is this good for Bitcoin’s price? Well, for a start, Bitcoin mining is now far easier and far more lucrative as the algorithm readjusts following the China crackdown. More and more people, institutions and even national governments will explore the possibility of bitcoin mining now that the Chinese dominance is completely over at present.

As the mining increases, so does the pressure on the price, pushing it upwards. Although we should not expect bitcoin's hash rate to reach its all-time-high of 180 million TH/s anytime soon, the trend is looking very good.

Take advantage of this trend (remember, the trend is your friend!) as it gathers momentum, with EVblock today.

Tags:
Bitcoin
Miners
This website is operated by EVanera AG CHE-265.995.382 ("DBA" EVblock )
2021 ALL RIGHTS RESERVED