CryptoQuant: Bitcoin Hashrate Nears All-Time High, Contributing to Price Stability

IconCryptoNewsTerminal Staff31 Jul, 2024

cryptonews.jpg

CryptoQuant: Bitcoin Hashrate Nears All-Time High, Contributing to Price Stability

Bitcoin's hashrate, a measure of the computational power dedicated to mining the cryptocurrency, is approaching its all-time high, which could contribute to the stability of Bitcoin's price, according to a market report published by on-chain analytics firm CryptoQuant on January 31. The report states that "the recovery of the hashrate is related to the sustained increase in the price of Bitcoin." The recent rally in Bitcoin's price suggests that miners are being adequately compensated, which could ease the market pressure from miners selling their Bitcoin due to a lack of fair compensation. The recent accumulation of Bitcoin by large cryptocurrency mining companies is one of the supporting factors for this observation. However, it should be noted that the profitability of miners is currently overly dependent on the price of Bitcoin, which is a risk. In particular, it should be noted that the transaction fees paid by the Bitcoin network to miners have decreased sharply compared to before the halving.

Related News