End of Hash Ribbon Symbol Mining Count: CryptoQuant
The Bitcoin (BTC) Hash Ribbons indicator, a metric used to gauge the difficulty and liquidity of the 30-day and 60-day moving averages, may end miners' holding capacity, according to data from CryptoQuant.
When the 30-day moving average indicator crosses above the 60-day moving average, it signals the end of the mining boom, as miners switch to more efficient miners and re-enter the market.
This often coincides with the digital asset's lowest price, the analyst firm said, and investors can time their entry carefully and buy the dip to enter the market at a more profitable price.
The problem of mining has reached a new level than ever before
In the year On August 1, Bitcoin's mining difficulty, a measure of the computational power required to successfully mine one Bitcoin, hit an all-time high of 90.66 trillion. Since then, the problem has dropped to 86.8 trillion — a slight improvement, but still well above historical levels of problems.
Related: Bitcoin Miners Could Earn $13.9 Billion Annually From 20% Shift to AI and HPC – VanEck
As expected, this growing problem eroded miner profit margins, causing the miner hash price, a metric that measures mining profitability, to drop below $36 per petahash (PH/s). Miner hash rates have since recovered to around $40 PH/s, but even this level is dangerously close to historical lows.
Bitcoin miners branch out into other high-powered computing services.
The slow erosion of mining profits due to both the increase in computing power and the post-halving of block reward subsidies is driving a portion of miners to turn to artificial intelligence and high-powered computing services.
In July, Bitcoin mining company TeraWolf announced that it was building a new facility at the company's Lake Marine Station and expanding operations into high-performance computing and AI data centers.
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