Cover image via U.Today
With Bitcoin (BTC) maintaining a price above $70,000, the hashrate of the leading cryptocurrency continues to soar. Despite the price increase being just slightly above the previous high in 2021, the hashrate has seen a significant 200% increase. Ki Young Ju, the CEO of CryptoQuant, highlights this positive trend as a notable improvement in the network's capacity to store money, with the container now able to hold three times more money.
Ju illustrated this growth with a chart showcasing a 30-month rally in critical Bitcoin (BTC) network activity metrics, after experiencing a prolonged drop in 2021. As mentioned earlier, in April 2024, the Bitcoin (BTC) network will go through its largest halving event in terms of the change in miner rewards denominated in USD. This development may lead to a potential 3-7% reduction in active Bitcoin (BTC) miners due to the decrease in rewards from 6.25 to 3.125 Bitcoin (BTC) per block post-halving.
The increase in Bitcoin (BTC) hashrate, reaching over 700 Ehashes per second multiple times in March 2024 according to CoinWarz data, marks a doubling from the range reported a year prior. The hashrate is a crucial indicator of network activity, reflecting the competition among miners to add the next block by calculating hashes. This rise in hashrate signifies the dedication of miners to maintaining the security and decentralization of Bitcoin (BTC), serving as a positive sign of optimism for the future price performance of BTC.
