Bitcoin Hashrate Rises to New High as Miners Realize Loss – CryptoQuant

The Bitcoin network's hashrate hit a new all-time high following a surge in sales from smaller mining entities earlier this week. At the same time, the miner's hash rate has dropped to a low level.

According to a report by CryptoQuant, Bitcoin's hashrate stands at 627 exahashes per second (EH/s), marking a significant recovery from the 8.5% decline seen in July. The increase comes as BTC struggles to stay above $58,000 and trades 20% below $73,000.

Miner Hashrate increases

Hashrate congestion translates to more difficulty for miners as each block becomes harder and more competitive to mine, adding more computing power and energy costs. However, such an event means greater security for the larger blockchain.

Bitcoin's hash value, a measure of how much a miner can earn with each miner's computing power, fell to a low of $0.038 per TH/s. Shortly after Bitcoin's halving in April, this metric hovered around $0.05 per TH/s. This decline also coincides with last week's mining census.

Miners rallied as BTC briefly dropped to $49,500. On August 5, outflows from these market participants rose to 19,000 BTC, the highest level since March 18.

This means their average return has fallen to 25%, the lowest since January 22. During the cash sale, some miners suffered losses due to the drop in the price of Bitcoin. They saw their biggest daily loss since May 29, a whopping $22 million.

Small miners are being sold.

Large Bitcoin mining entities have consistently increased their holdings despite the mining boom. The stock of this group of market participants reaches 66,000 BTC.

On the contrary, the Bitcoin holdings of smaller entities have gone down. These miners may record further declines in their reserves as on-chain analysis shows more sales activity due to lower profitability. CryptoQuant's Miner Profit/Loss Sustainability metric indicates that miners are still underpaid, especially as mining difficulty increases and prices decrease.

On the bright side, miners capital events and high mining flows occur near the bottom of the area for BTC prices during bull cycles. This means a Bitcoin rally could be on the horizon.